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China Hikes Taxes on 'Suitcase' Jewelry Imports
Apr 10, 2016 7:49 AM
By Rapaport News
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RAPAPORT... Chinese authorities have moved to crack down on a "gray" market in luxury imports by raising taxes on jewelry and watches.
The government increased
tariffs on watches ordered from abroad to 60 percent from 30 percent and on
jewelry to 15 percent from 10 percent effective from April 8, according to the report.
The measures are directed
at individual shoppers – known as ‘daigous’ – who bring suitcases full of luxury
goods into the country and then resell them in person or online, eating into China’s
revenue from corporate taxes and discouraging domestic consumption,
particularly for higher-quality goods, the report said.
"We expect an adverse
impact on overseas purchases by Chinese daigous and tourists alike," the Reuters
report cited Exane BNP Paribas analyst Luca Solca as saying.
The government also
increased penalties for false declarations and tightened customs controls.
Officials are catching more and more Chinese tourists at the airport with
suitcases full of luxury goods and taxing them, according to the report.
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Tags:
China, financial, imports, Jewelry, luxury, luxury goods, Rapaport News, tax
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