Starting 8 April, China is going to ask for 17% VAT on products offered via e-commerce by foreign countries. This will cause imported food products to become considerably more expensive. In some cases a consumer’s tax will have to be paid as well, and the system in which products under 50 yuan are not taxed will disappear.
Shipments at 2,000 yuan and goods of 20,000 per year sent privately will also experience a tax increase. All of these levies will be on top of existing taxes between 10% and 50%.
With these measures China wants to encourage the sales of Chinese products. Analysts doubt the value it will have, because rich Chinese people will put up with the levies. Furthermore, Chinese online giant Tmall expects smuggling will increase.
