China may exempt some cosmetics from consumption tax  

(ECNS) – China's Finance Ministry is considering classifying cosmetics into high-end and general categories, and removing consumption taxes on the general ones, according to the Legal Daily.

China has been levying consumption taxes of as much as 30 percent for cosmetics, including high-end skincare products.

According to a report by Finance Minister Lou Jiwei, the authority is continuing to improve its reform plan for the consumption tax, and a new policy is expected to come out later this year.

Sun Gang, a research director with the ministry, said the adjustment will remove some daily living items from the scope of its consumption tax and add more goods that cause heavy pollution or use excessive energy.

China has already levied consumption taxes on some products, including those that are harmful to health or society; luxury goods and non-necessities; high-energy consumption and high-end products; non-renewable and non-placeable petroleum products; and financially significant products.