Shanghai encourages “tax-free economy” as part of consumer push

Texas News Today

People visit a major shopping area in Shanghai, China, on July 12, 2021. Photo taken on July 12, 2021. Reuters / AllSong / Files

September 18, 2021

BEIJING (Reuters) – The Shanghai government will support companies applying for duty-free sales approval and encourage the establishment of duty-free shops at airports, hotels, malls and other commercial facilities, city officials said.

The 2021-2025 consumption plan announced on Saturday was meant to develop a “tax-free economy” encouraging spending on imported products, including heavy-duty luxury goods.

Currently, China’s tax exemption spending is concentrated in Hainan province on the South Island, and last year the maximum personal tax exemption spending was raised from 30,000 yuan to 100,000 yuan ($15,467).

Tariffs on imported consumer goods vary in China, with some luxury goods such as perfumes and watches exceeding 30%.

Buoyed by steep price cuts, millions of domestic tourists gather at Hainan Mall every year, and the numbers are rising because of restrictions on overseas travel due to the COVID-19 pandemic.

Otherwise, there are over 300 duty-free shops across the country that sell products ranging from fragrances and cosmetics to clothing and footwear. Duty Free Corp of China Tourism Group is a leading player with nearly 200 stores.

The annual tax exemption expense is tens of billions of yuan.

($1=6.4655 RMB)

(Reporting by Ryan Woo; Editing by Simon Cameron-Moore)

Shanghai encourages “tax-free economy” as part of consumer push

source link Shanghai encourages “tax-free economy” as part of consumer push


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