China has said it will cut import tariffs on a range of consumer products, including cashmere garments, in a bid to lower costs and help stimulate domestic consumer spending.
A notice by the Finance Ministry states that from 1 December the import duty on some consumer goods will be reduce by a “tentative tax rate.” The cuts will affect 187 imported products, after which tariffs on the products will average 7.7%, down from the current 17.3%, the Ministry said.
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“People’s consumption demands are ever increasing. [The tax cuts] will benefit the choices available to consumers domestically, and help upgrade the domestic supply system,” it added.
The high tax on imports has traditionally pushed up the price of foreign brands in China, resulting in consumers spending more overseas. China, however, has cut import tax rates on products including apparel in recent years in a drive to push consumer spending as the country looks towards becoming more of a consumption-driven economy.
