China reduces consumption tax reduction for luxury cosmetics to boost sales

China reduces consumption tax reduction for luxury cosmetics to boost sales

Chinese consumption tax for luxury cosmetics has been reduced from 30 percent to 15 percent, with it being waived entirely for non-luxury cosmetics.  

The move, announced by the finance ministry, has been initiated in order to help the company stimulate growth and boost domestic spend, while the country is hoping it will make imported luxury goods more affordable for domestic consumers.

While it’s been said the move will help imported brands, the growth will be limited due to other steep tariffs, which will continue to make products more expensive than those abroad.

It comes at a time when China going through the motions of boosting its economy amidst a tough business environment with failing manufacturing and exports.

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