August 14 2020

China Allows Tax Reduction for Imports of Certain Commodities

Source: IBFD Tax Research Platform News

Effective 5 August 2020, China allows the reduction of import duties and VAT or consumption tax on imports of 20 listed commodities that were previously prohibited in the Notice of State Council [1994] No. 64.

The 20 commodities concerned include:

  • televisions;
  • video cameras;
  • video recorders;
  • video players;
  • audio equipment;
  • air-conditioning equipment;
  • refrigerators and freezers;
  • washing machines;
  • cameras;
  • photocopy machines;
  • stored program control telephone switching systems;
  • microcomputers and peripherals;
  • telephones;
  • wireless paging systems;
  • fax machines;
  • electronic calculators;
  • typewriters and text processors;
  • furniture;
  • lamps/lighting instruments; and
  • food materials (condiments, meat, eggs and vegetables, seafood, fruit, soft drinks, alcohol drinks and dairy products).

The repeal of the prohibition was announced in Circular [2020] No. 36, jointly issued by the Ministry of Finance, General Customs and the State Taxation Administration.

Report from Shiqi Ma, IBFD China office