Mainland China is chipping away at Hong Kong’s trading advantage after introducing tax concessions and benefits for e-commerce businesses.
These include lower consumption tax on cosmetics and fashion items and more duty free outlets, according to the Hong Kong Economic Journal which cites Jeffrey Chan, regional vice chairman for Greater China of CPA Australia.
Goods bought online are subject to a 10 percent tax compared with 30 percent for general imports.
However, Chan said Hong Kong enterprises should not rely to Chinese e-commerce to boost their cash flow, adding third-party payment typically takes two to three months to materialize.
Chan said the Hong Kong government should offer more support to local industries by providing back-end payment infrastructure, among others.
– Contact us at [email protected]