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Tariff cuts to benefit more than just consumers

China Daily | Updated: 2017-11-27 07:49

THE MINISTRY OF FINANCE announced on its official website that the average tariff rates of 187 kinds of daily consumption goods will be temporarily lowered from 17.3 percent to 7.7 percent since Dec 1. Beijing News comments:

The tariff cut this time has received especially wide welcome among the people because it covers many daily consumption goods, ranging from food, home appliances, and clothing to make-ups. Besides, the tariff rates of some of the products, such as certain dairy milk and paper diapers, have been lowered to zero, which is good news to those who buy baby products overseas.

With lower tariff rates, people will pay less when buying these consumption goods. That's why the tax cut is widely praised as a move benefiting the people.

Of course, besides the tariff, there are other taxes such as value-added tax and consumption tax. In order to further benefit the people, it is possible to cut these taxes, too.

Further analysis shows that the move not only benefits the ordinary people, but also boosts the whole economic growth, because more consumption will propel the economy to follow a virtuous circle.

Besides, lower tariff will encourage people to buy imported products at home instead of buying them overseas, which boosts domestic, instead of overseas, consumption. Data show that if one third of Chinese consumers' overseas consumption turns into domestic consumption, the consumption rate will rise by one percent.

From the government's point of view, by cutting tariff rates it is also honoring its promise of further opening the domestic market and liberalizing trade. With more overseas products coming into the domestic market, domestic producers will feel the pressure and upgrade their production lines, too. In the long run, China's upgrade of its economic structure will also be accelerated.

That's why, in one word, the cutting of the tariff rates benefits all and is a welcome to all.

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