China to cut tariffs on popular imports in bid to boost spending
Bid to boost consumer spending amid slowdown could affect HK's retail sector
Observers said the move could have an impact on Hong Kong's retail sector.
After a meeting chaired by Premier Li Keqiang, the State Council said boosting domestic consumption was an important step to stabilising economic growth, and urged departments to come up with detailed plans to carry out the policy soon.
It said there would be a trial run by June for imported products in high demand. It also called for adjusting the current consumption tax policy that importers also face on bringing in everyday items, such as cosmetics, clothing and accessories. More duty-free shops will be set up at ports of entry, while overseas tourists are likely to enjoy an easier process claiming back sales tax.
More regular inspection of online shops that sell foreign-made goods import will also be established, while other "unreasonable fees during the import process" will be dropped.
The State Council's decision came after mainland retail sales grew 10.2 per cent in March from a year earlier, slowing from 10.7 per cent in the January-February period. Economic growth slowed to 7 per cent in the first quarter of this year.
Mainlanders appear to be more willing to head overseas to buy not just big-ticket luxury items but also regular household goods. Reports of mainlanders snapping up toilet lids in Japan have raised concerns over domestic product quality and triggered calls for lowering tariffs.
