Date
18 December 2017
China is considering a makeover of the consumption tax is imposes on cosmetics. Photo: Bloomberg
China is considering a makeover of the consumption tax is imposes on cosmetics. Photo: Bloomberg

China may scrub 30% tax on mass-market cosmetics

The finance ministry might scrap a 30 percent consumption tax on low and mid-range cosmetics while keeping a levy on luxury products, Tencent Finance reported Monday, citing an unnamed source.

The move is part of a structural tax reform plan expected to be unveiled in the second half, the report said.

Sun Gang, a researcher with the ministry’s research institute for fiscal science, was quoted as saying that the ministry is weighing up whether to exempt some daily necessities from the tax and impose it on various high-end consumer goods and energy-intensive, highly polluting products.

The tax covers 14 categories, including cigarettes, alcohol, cosmetics, expensive jewelry, pearls and jade, firecrackers, motorcycles and cars.

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