03 November 2016 China reduces consumption tax on cosmetics products With the objective to stimulate domestic consumption of cosmetic products, various central government departments released the following circulars on September 30 to adjust consumption tax (CT) policies on cosmetics products: (i) Caishui [2016] No. 103 released by the Ministry of Finance (MOF) and State Administration of Taxation (SAT); (ii) Shuiweihui [2016] No. 26 released by the Customs Tariff Commission of the State Council; (iii) Caiguanshui [2016] No. 48 released by the MOF and SAT; and (iv) GAC Public Notice [2016] No. 55 released by the General Administration of Customs. The new CT policies became effective as of October 1 and would benefit both domestic and foreign brands, making the products more affordable to the domestic market. A Tax Alert prepared by EY's Global Tax Desk Network, and attached below, provides additional details. Document ID: 2016-1855 |
