Premier Li Keqiang of the State Council presided over the executive meeting of the State Council on May 30 and decided to lower the import tariffs on consumer goods in a wider range.
The meeting pointed out that further reducing the import tariffs on daily consumer goods will help expand the opening up, meet the needs of the masses, and push the product up to quality and industrial upgrading. The meeting decided that starting from July 1 this year, clothing, shoes, hats, kitchens and sports and fitness products will be provided. The average tariff rate on import duties decreased from 15.9% to 7.1%; the average tariff rate on import tariffs on household appliances such as washing machines and refrigerators fell from 20.5% to 8%; the average import tariffs on imported foods for processed foods such as farmed fishery, fishing products and mineral waters, etc. From the 15.2% to 6.9%; the average tariff rate on imports of cosmetics and some medical and health products such as detergents and skincare, hairdressing, etc. fell from 8.4% to 2.9%. The relevant departments should implement tax reduction measures to prevent intermediate links from increasing profits, To benefit consumers and promote the competitiveness of domestic industries.
The reporter learned that since 2015, China has lowered the import tariffs on consumer goods four times in a row, namely in June 2015, January 2016, January 2017 and December 1, 2017. This is the fifth time. In the selection of consumer goods, the last four times mainly selected Chinese residents who have a stronger willingness to buy abroad, and have a higher tariff rate for consumer goods such as skin care products, some clothing, some footwear, some bags, diapers, specialty foods, and cultural consumer goods.
On December 1st last year, the tariffs on consumer goods fell sharply. China reduced the import tariffs on 187 commodities, and the average tax rate fell from 17.3% to 7.7%. Consumer goods that reduce import tariffs cover foods, health products, medicines, and daily chemical products. Clothing, footwear, household equipment, culture and entertainment, and general merchandise, etc., involved a total of 187 eight-digit tax numbers, and the average tax rate fell from 17.3% to 7.7%. It is understood that these consumer goods are closely related to consumer demand, and people's daily lives Closely related, quality products and specialty products that are not available at the moment in China are conducive to enriching domestic consumption options and guiding the transformation and upgrading of domestic supply systems.
Regardless of whether it was the last tax reduction or this time, its purpose was the same, both to expand openness and meet the needs of the people.
Limited effect on reducing domestic and foreign price differences
Reducing the tariffs on consumer goods will release a positive signal for expanding the import of consumer goods, which will help to steadily expand the opening up to the outside world, promote the balance of import and export trade, and promote the transformation of economic growth patterns and sustainable economic and social development.
At the time of the last tax reduction, relevant department officials once said that there are many factors affecting the import of consumer goods, and it is necessary to implement comprehensive policies to increase imports. Tariffs are only one of the aspects. From the previous practice of lowering import tariffs on consumer goods, it has been seen that the , Tariff reduction can play a positive signal role.
Since tariffs are levied on the basis of commodity import prices rather than market retail prices, sampling shows that the actual amount of tariffs in the retail price of goods is only 0.5%-7%, so the direct effect on narrowing the difference between domestic and foreign prices is limited.
Reducing tariffs has created favorable conditions for expanding the import of consumer goods and reducing the import cost of consumer goods. However, the change in the prices of related goods and domestic market prices is ultimately determined by the market.
Leaving domestic consumption and taxation in China
The adjustment of import tariffs means that consumers will be able to buy the desired imported products at a lower price in the country.
The direct impact of this policy is to help keep a large number of outflows in the country. According to data from the World Tourism Organization, foreign tourists spending on Chinese tourists in 2016 reached US$261 billion, a year-on-year increase of 12%. Chinese tourists are the world's overseas tourism consumption. Most tourists.
The difference between domestic and foreign products has become a major cause of consumer outflows. Experts point out that if one-third or two-thirds of Chinese residents’ consumption outside the country returns each year, they can stimulate consumption growth by one percentage point. The reduction in import tariffs on consumer goods has increased. , Helps to further expand domestic demand.
Cao Lei, director of the China Electronic Commerce Research Center, once stated that the adjustment of import tariffs is a direct benefit to the cross-border e-commerce platform. It will reduce the blind spot for Haitao taxation supervision and promote more foreign products to enter the country through formal channels, thus realizing consumer retention. Domestically, the tax stays in the country will also make the quality of the goods and supply chain management more secure.
Reducing import tariffs on consumer goods will increase competition in the domestic product market through opening up, and will exert pressure on domestic production. This will have a negative effect on the transformation and upgrading of domestic related consumer goods industries, and it will also help China's enterprises move toward high-end global value chains.