BEIJING - China, already the world's second-largest luxury goods market, will soon slash import duties on opulent items to encourage wealthy local shoppers to buy more pricey cosmetics, watches and liquor, Chinese media said on Monday.
China's high import duties of 50 percent for cosmetics and 30 percent for high-end watches have driven many rich Chinese mainland consumers to shop in Hong Kong, London and Paris, a trend that several Chinese ministries want to change, the 21st Century Business Herald reported.
Imagine That............higher taxes imposed = less revenue brought in. This is been going on between New Hampshire and Massachusetts for years. Massachusetts still does not get it as many head north weekly to purchase wine and spirits and even large household items in order to save the high Massachusetts sales tax.
It has also been reported recently that rich Chinese are also purchasing land abroad. The world will always have rich, they will just be moving their wealth to more welcoming shores.