6 May, 2015
At an executive meeting of the Chinese state council, Premier Li Keqiang said that a previous plan to reduce tariffs by August was “too slow”, and insisted the cuts were brought forward, the state council said in a statement.
“Cuts on tariffs of imported goods will benefit domestic consumers and can also accelerate industrial upgrading via competition,” Keqiang said.
Keqiang also said that China’s opening up is an effective way to force reform, and the consumption tax collection system will be gradually adjusted.
No details were given on which tariffs will be reduced or by how much.
The state council also decided to open more duty-free shops at China’s borders, with more products available and a higher limit on purchases for each tourist. Easier tax refund procedures will also be promoted, and customs procedures will be tightened to cut smuggling, China Daily reported.
John Salmon, Partner, Pinsent Masons
Jon Fell, Partner, Pinsent Masons