my country has reduced the most-favored-nation tax rate for some commodities, and the overall tariff level has been reduced to 7.5%
According to the decision of the 26th Executive Meeting of the State Council, the Tariff Commission of the State Council issued an announcement to reduce the most-favored-nation tax rate for some commodities starting from November 1, 2018.
General Secretary Xi Jinping announced in his keynote speech at the opening ceremony of the Boao Forum for Asia 2018 Annual Conference that this year we will reduce import tariffs on automobiles to a considerable extent and at the same time reduce import tariffs on some other products. Premier Li Keqiang requested to further reduce the overall tax rate on imported goods. In order to implement the decisions and arrangements of the Party Central Committee and the State Council, my country has implemented zero tariffs on most imported drugs from May 1 this year, and has reduced import tariffs on automobiles, parts and components, and some daily consumer goods since July 1. The third step is to reduce taxes on products expanded under the information technology agreement.
In order to adapt to industrial upgrading, reduce enterprise costs and meet the needs of the public for multi-level consumption, the most-favored-nation tax rate for some industrial products and other commodities will be reduced from November 1 this year. This tax reduction mainly involves textiles; stone, ceramics, glass products; some steel and base metal products; mechanical and electrical equipment and parts, such as metal processing machinery, textile machinery, engineering machinery, power transmission and transformation equipment, electrical equipment, instrumentation, etc. ; Resource commodities and primary processed products, such as non-metallic minerals, inorganic chemicals, wood and paper products, gems and jade, etc. There are a total of 1,585 tax items on tax-reduced products, accounting for about 19% of the total tax items in my country. The average tax rate has dropped from 10.5% to 7.8%, with an average reduction of 26%. At the same time, with the reduction of the overall tariff level, especially the reduction of import tariffs on medicines and daily consumer goods, the tax item rates of import taxes on inbound items (commonly known as personal postal taxes) will be reduced accordingly.
Since the beginning of this year, after many consecutive independent adjustments, my country’s overall tariff level will be reduced from 9.8% last year to 7.5%, with an average reduction of 23%. Appropriately reducing tariffs will help promote the balanced development of foreign trade and promote a higher level of opening up to the outside world. It will also help to coordinate the utilization of both international and domestic resources and promote domestic supply-side structural reform. This year marks the 40th anniversary of reform and opening up. Taking the initiative to reduce the overall level of tariffs is a practical action to implement the spirit of General Secretary Xi Jinping’s important speech at the Boao Forum for Asia. It is also an important measure for our country to further expand opening up and actively expand imports in accordance with its own high-quality development needs. This action and measures demonstrate that my country will unswervingly pursue a mutually beneficial and win-win opening strategy. While enhancing its own development momentum, China’s development will also better benefit the world.
The relevant person in charge of the Office of the Tariff Commission of the State Council answered reporters’ questions on independently reducing the overall level of tariffs
On September 30, the Customs Tariff Commission of the State Council issued an announcement to reduce import tariffs on 1,585 tax items starting from November 1, 2018. At this point, my country’s overall tariff level will be reduced from 9.8% last year to 7.5%. Regarding issues related to tariff reductions this year, the reporter interviewed the relevant person in charge of the Office of the Tariff Commission of the State Council.
Q: Please briefly introduce my country’s tariff reductions this year.
Answer: On April 10, General Secretary Xi Jinping announced in his keynote speech at the opening ceremony of the Boao Forum for Asia 2018 Annual Conference that this year we will reduce import tariffs on automobiles to a considerable extent, and at the same time reduce import tariffs on some other products, in an effort to increase the number of people Import of characteristic and advantageous products with relatively concentrated demand. Premier Li Keqiang proposed reducing import tariffs on automobiles and some daily consumer goods in this year’s government work report. When answering reporters’ questions at the “Two Sessions”, he pointed out that my country’s import tax rate on goods is at a medium level in the world, and we are willing to adopt a more open attitude. Continue to further reduce the overall tax rate on imported goods. The Tariff Commission of the State Council (hereinafter referred to as the Tax Commission) resolutely implements the decisions and arrangements of the Party Central Committee and the State Council, and the committee members work closely with each other to carefully formulate tax reduction plans. With the approval of the State Council, a series of new measures to independently reduce tariffs have been introduced.
First, attach great importance to people’s health and well-being and comprehensively reduce drug tariffs. On May 1 this year, the tax on drugs will be comprehensively reduced, and the import tariffs for a total of 28 tax items, including anti-cancer drugs, alkaloid drugs with anti-cancer effects, and actually imported Chinese patent medicines, will be adjusted to zero. At the same time, the value-added tax burden on the production and import of anti-cancer drugs has been significantly reduced. Drugs are related to people’s health and family happiness. Tax reduction not only demonstrates my country’s determination to encourage the accelerated development of the pharmaceutical industry, but also is a concrete manifestation of promoting the implementation of the Healthy China strategy.
The second is to promote development through openness and reduce automobile import tariffs to a considerable extent. On July 1 this year, taxes were reduced on 218 tax items for automobiles and parts. After the tax reduction, my country’s vehicle tax rate has been lower than the average level of developing countries, which is in line with the reality of my country’s automobile industry. This tax reduction will promote industry structural adjustment and optimal allocation of resources, accelerate the survival of the fittest, and help improve the quality of products and services. It is expected to promote automobile price adjustments to a certain extent and provide consumers with more benefits.
Third, in order to meet the people’s needs for a better life, tariffs on daily consumer goods will be reduced on a large scale. On July 1 this year, taxes were reduced on 1,449 tax items for daily consumer goods. Tax reductions on daily consumer goods are closely related to people’s needs for a better life. This tax reduction is not only large in quantity but also powerful. The average tax reduction range isThe relevant tax items and rates of personal postal tax should also be adjusted simultaneously. The main adjustment matters are: first, in view of the fact that my country has implemented zero tariffs on most drugs, the personal postal tax rate of drugs should be adjusted accordingly from 30% to 15%. At the same time, imported anti-cancer drugs that are subject to a reduced import value-added tax of 3% according to national regulations will be taxed at the goods rate. The second is to adjust the tax rates for tax items 2 and 3 from 30% and 60% to 25% and 50% respectively. The tax exemption regulations for personal use and reasonable quantities of imported items within the specified amount remain unchanged.
Question: What impact will the tax reduction measures implemented on November 1 have on people’s lives and enterprise production?
Answer: The tax reduction measures that will be implemented on November 1 are mainly targeted at reducing taxes on industrial products such as mechanical and electrical equipment, parts and raw materials required for production. They are mainly aimed at reducing the production costs of domestic enterprises and improving the profitability of domestic enterprises. The supply capacity and level will indirectly improve the cost performance of domestic products, ultimately benefiting the people. Before adjusting the tax rate, the Tax Committee extensively listened to the opinions of industrial departments and industry associations. The tax reduction for commodities was moderate, taking into account the interests of upstream and downstream industries.
Specifically, appropriately reducing import tariffs on some electromechanical equipment and parts will be conducive to the introduction of foreign advanced technology and equipment, increase effective supply, and help my country’s industrial upgrading. It will also be conducive to forming healthy competition and promoting domestic related industries to improve their technical level. and supply quality. Properly reducing import tariffs on some raw materials can not only reduce production costs for enterprises and alleviate the bottleneck pressure of resource scarcity faced by economic development, but also help implement the concept of green development and promote supply-side structural reform.
Objectively speaking, lowering tariffs may bring certain pressures and challenges to related domestic industries. Relevant enterprises need to actively respond, accelerate transformation and upgrading, improve quality and efficiency, meet challenges with innovative development, and continuously improve their competitiveness.
