Beijing plans to raise the tax threshold for e-commerce imports to allow consumers to spending more money on overseas goods online without paying tax. The move appears designed to boost consumption and kick-start a slowing economy, Caixin reports.
The tax quota will be increased by 30%, from RMB 20,000 to RMB 26,000 ($3,750), according to an announcement by the State Council. The limit for a single transaction will also rise from RMB 2,000 to RMB 5,000, and the policy will be expanded from 15 to 22 cities.
Chinese consumers spent RMB 1.03 trillion on imported products during the first half of 2018, with the total for the whole year expected to reach RMB 1.9 trillion, up 27% year-on-year, according to the Electronic Commerce Research Center.