Shanghai encourages ‘duty-free economy’ as part of consumer push
Individuals go to a major buying space in Shanghai, China July 12, 2021. Image taken July 12, 2021. REUTERS/Aly Tune/Recordsdata
BEIJING, Sept 18 (Reuters) – The Shanghai authorities will help firms making use of for approval to promote duty-free items, and encourage duty-free outlets to be arrange at airports, accommodations, malls and different business venues, municipal authorities stated.
The event of a “duty-free financial system”, which can encourage spending on imported merchandise, together with heavily-taxed luxurious items, was outlined in a 2021-2025 consumption plan launched on Saturday.
Presently, duty-free spending in China is essentially concentrated within the southern island province of Hainan, the place the annual restrict on particular person duty-free spending was hiked to 100,000 yuan ($15,467) final yr from 30,000 yuan beforehand.
Tariffs on imported shopper items fluctuate in China, with taxes on some luxurious objects equivalent to perfumes and watches exceeding 30%.
Lured by the considerably decrease costs, tens of millions of home vacationers flock to Hainan’s malls annually, and the numbers have been boosted by restrictions on abroad journey ensuing from the COVID-19 pandemic.
In any other case, there are greater than 300 duty-free outlets throughout the nation promoting merchandise from fragrances and cosmetics to clothes and sneakers. China Tourism Group Responsibility Free Corp is the dominant participant, with practically 200 shops.
Annual duty-free spending is within the tens of billions of yuan.
($1 = 6.4655 Chinese language yuan renminbi)
Reporting by Ryan Woo; Enhancing by Simon Cameron-Moore
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