September 18, 2021
Beijing (Reuters) -Shanghai government will support companies applying for duty-free sales approval and encourage the establishment of duty-free shops at airports, hotels, malls and other commercial facilities, city officials said.
The development of a “tax-exempt economy” that encourages spending on imported products, including heavy-duty luxury goods, was outlined in the 2021-2025 consumption plan announced on Saturday.
Currently, China’s tax exemption spending is concentrated in Hainan Province on the South Island, and last year the maximum individual tax exemption spending was raised from 30,000 yuan to 100,000 yuan ($ 15,467).
Tariffs on imported consumer goods differ in China, with some luxury goods such as perfumes and watches exceeding 30%.
Fascinated by the drastic price cuts, millions of domestic tourists gather at Hainan malls each year, and the number is increasing due to restrictions on overseas travel due to the COVID-19 pandemic.
Otherwise, there are more than 300 duty-free shops nationwide selling products ranging from fragrances and cosmetics to clothing and shoes. China Tourism Group’s Duty Free Corp is a leading player with nearly 200 stores.
Annual tax exemption expenditure is tens of billions of yuan.
($ 1 = 6.4655 RMB)
(Report by Ryan Woo; edited by Simon Cameron-Moore)
Shanghai encourages “tax exempt economy” as part of consumer push
Source link Shanghai encourages “tax exempt economy” as part of consumer push