Published
Sep 3, 2013
Download
Download the article
Print
Text size

China could be raising tax on luxury goods

Published
Sep 3, 2013

Chinese finance minister Lou Jiwei confirmed last week intentions to increase sales tax on luxury goods in the country. With the Chinese market accounting for a quarter of all luxury sales, the increase is likely to have significant effects.


China’s leaders have been pushing a strong reform as part of the country’s economic policy, with Kong Jingyuan, director-general the National Development and Reform Commission, first outlining plans in earlier in the spring.

Predominantly the tax changes would be aimed at products deemed hazardous to health and the environment, with alcohol and cigarettes being the first targeted. With a 20% expected increase of sales in the sector, luxury goods could also be hit by the tax increase.

In 2012, China’s GDP increased by 7.8% - its weakest year of growth in 13 years – yet Beijing expects to reach targets of 7.5% for this year. With activity becomes ever more focused on internal demand, the country expects its tax reform to close by the end of 2015.

Copyright © 2024 FashionNetwork.com All rights reserved.