China, the world's fastest developing market for luxury goods, is expected to reduce or scrap taxes on imported high-end products to boost domestic consumption, state media reported earlier this week.
A new tax system for luxury products is to be introduced by October 1, the 21st Century Business Herald said -- the beginning of a week-long holiday for National Day and a shopping frenzy for Chinese consumers.
China's steep luxury taxes -- which are as high as 60% -- have for years sent well-heeled shoppers swarming to Hong Kong and Europe for goods such as Louis Vuitton handbags and Rolex watches to avoid the hefty tariffs.
The finance ministry's revamped system will reduce and sometimes remove taxes for products such as watches, clothes, shoes, suitcases, cosmetics, perfumes and milk natural powder, the newspaper said, citing unnamed sources.
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