The volume of imported goods entering Shenzhen dropped 61 percent in the four days following the implementation of a new levy on internet purchases on April 8, the Hong Kong Economic Journal reports.
The new levy raises the tax on imported infant formula to 15 percent from 10 percent.
The volume of cross-border goods entering Chengzhou, Ningbo and Hangzhou also plummeted 70 percent, 62 percent and 65 percent, respectively, according to figures from the Chinese E-Commerce Logistics Enterprise Alliance.
The new regime moves to a three-tier tax structure of 15 percent, 30 percent and 60 percent, from a four-tier system of 10, 20, 30 and 50 percent.
The new tax structure streamlines the mechanism of levy charged on imported goods purchased online and is expected to gradually benefit electronic commercial enterprises, said Jeffrey Chan, president of the Certified Practising Accountant Australia Greater China.
Ni Jun, general manager of e-commerce site Haidaowang.com, criticized authorities for imposing new rules without leaving much room for market players to adapt to them, resulting in a plunge in online imports.
[Chinese version 中文版]
– Contact us at [email protected]