Cosmetics, skincare and beauty products classified as “ordinary” rather than “high-end” or “luxury” won’t be subject to a consumption tax as of Oct. 1, according to announcements made via China’s Ministry of Finance website.
At the same time, cosmetic, beauty and skincare classified as “luxury” products will see their consumption tax rate halved, from the current rate of 30 percent, to 15 percent.
This product category will also be subject to import duties equal to 10 yuan, or $1.50 at current exchange, per milliliter, or 15 yuan, $2.25, per piece. The value added tax (VAT) on imported cosmetics, which currently stands at 17 percent, will remain unchanged.
The government releases provided no further details or information.