News

    China to levy more taxes on luxuries

    By He Yini (chinadaily.com.cn)
    Updated: 2014-03-06 11:45

    In a bid to improve income distribution, the Chinese government is mulling more taxes on some luxury products in 2014, said Finance Minister Lou Jiwei at a news briefing during the second session of the National People's Congresson Thursday.

    "No detailed regulation on consumer taxes has been rolled out yet, we are still deliberating," Lou added.

    "Besides that, we'll speed up legislation process for environment and property taxation," he said.

    Announcement comes as the country steps up efforts to curb luxury consumption amid an ongoing frugality campaign.

    The year-long drive turned out to be bad for quite a few businesses last year, including liquor and eatery industries.

    Luxury consumption in China has been booming in the past few years as Chinese people's income saw a big leap amid the country's robust economic growth, overtaking Japan as world's second-largest luxury consumer.

    Luxury goods are among the five categories that face consumer taxes.

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