China reduces tax on cosmetics from 30% to 15%
The tax cut comes into place since 1 October 2016. This updated tax rate was only likely to have a “moderate” impact on domestic demand with a shift in purchasing patterns that has seen cosmetics become an every day expense rather than a luxury.
However, import tax remains at 10% in the region and VAT is still set at 17%. This means that cosmetics in China will remain relatively expensive compared to international markets.