China wipes out cosmetics tax

Ordinary cosmetics in China will not be subject to consumption tax in the future, Legal Daily reported on Monday, citing sources knowledge of the matter.

The Finance Ministry will separate high-end cosmetics from ordinary cosmetics. While luxury beauty products will still be subject to consumption tax, which was meant to curb luxury spending, cosmetic items that are necessary for daily life will be exempted from the tax.

The reform will be announced in the second half of this year, the report said.

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