China to cut import taxes on consumer and luxury goods

China is likely to cut import taxes on a large number of consumer and luxury goods this year, said Wei Jianguo, a former deputy commerce minister, state media reported. “Consumer and luxury goods will help promote domestic consumption and China needs to reduce import duties. There will be at least two rounds of reductions this year on a large range of goods,” Wei said at the sidelines of the annual session of CPPCC. Premier Wen Jiabao pledged that the government would enact measures designed to boost domestic consumption at this year’s annual National People’s Congress. Ministry of Commerce officials have floated the idea of cutting luxury import tariffs since last year to stimulate domestic consumption. However, the Ministry of Finance have resisted the proposal, arguing that the taxes benefit domestic producers and promote social fairness by targeting rich consumers, The Wall Street Journal reported.