Recently, the Ministry of Finance, the General Administration of Customs and the Ministry of Commerce jointly unveiled a series of policies, including tax reduction, tax exemption and tax refunds.
China will reduce the import tariff rates of some goods for daily consumption, such as clothes, shoes, skin care products and diapers from June 1st with over 50% off on average.
Moreover, China will open up more duty-free shops. Lu Peijun, the deputy administrator of the General Administration of Customs, points out that China will restore and increase the number of duty-free shops in inbound ports according to the enterprises’ needs and the needs of port layouts.
Shi Yaobin, the vice minister of the Ministry of Finance, said that the first step is to establish more duty-free shops at airports according to the number of inbound and outbound tourists. China is going to expand the list of duty-free items that the domestic residents need the most and raise the duty-free shopping quota. The details of the proposal are still being discussed.
Shi Yaobin also points out China is going to take action to attract more foreign tourists to spend money in China, and promote exporting locally made products with international competitiveness. For now, the major measure is the implementation of a tax refund scheme for departing foreign tourists.