China cuts down tariffs on personal luxury goods

China today drastically cut down tariffs levied on the import of personal luxury items to stimulate domestic consumption and encourage its citizens to buy more from the local markets instead of foreign.
Starting from June 1, import tariffs on suits and sneakers will be trimmed from 14-23 per cent to 7-10 per cent and 22-24 per cent to 12 per cent respectively, the ministry said in a statement.
According to the adjusted policy, import tariffs on cosmetics and diapers will be cut from 5 per cent to 2 per cent, and 7.5 per cent to 2 per cent respectively, state-run Xinhua news agency reported.

The adjustments are an important step to stabilise economic growth through benefiting imports, promoting domestic consumption and spurring industrial upgrade, said the ministry.
The tariff cuts were apparently aimed at luring the Chinese to buy more from the local markets instead of foreign markets specially, Japan, South Korea, US and Hong Kong where Chinese tourists have been purchasing cosmetics and luxury goods.
Over 100 million Chinese visited abroad last year and spent billions of dollars in purchases.
China, the world's second largest economy, resorted to widespread reforms as growth slowed to 7 per cent in the first quarter this year, down from 7.3 per cent the previous quarter, and retail sales in April grew 10 per cent from a year ago, slightly lower than the 10.2 per cent posted in March.