China may cut import duties on luxury goods

June 20 – China may further lower import taxes on mid and high-end luxury goods, reports Guangzhou Daily.

According to an unnamed insider, the tax cut may range from between two percent and 15 percent, with high-end tobacco and wine expected to be the first to see a reduction in taxes.

The insider expects the government to soon release the final version of the tax reduction plan.

According to Wang Yong, President Secretary of Brand China Industry Union (BCIU), taxes on luxury goods currently range from 15 to 25 percent, with some goods having import duties of 50 percent.

In addition, there are other taxes such as value-added, businesses operation and consumption taxes.

Locals had spent 200 billion yuan on luxury goods in foreign countries in order to avoid paying the high taxes, added Wang.

According to Bain & Company, suppliers of luxury goods earned 68.4 billion yuan from Chinese buyers in 2010.