China will slash import tariffs on selected consumer goods starting from June 1 to boost the economy, the Chinese Ministry of Finance said in a statement on Monday.
China will lower taxes on goods including skincare products, Western-style clothes and children’s nappies or ‘diapers’ by an average of more than 50 percent, as an “important measure to create stable growth” and push domestic consumption levels, said the ministry.
The cut follows a statement by China’s State Council in April that the government was looking to reduce import tariffs on selected goods to spur domestic spending in support of the economy.
China reported a 7-percent growth rate in gross domestic product in the first quarter of this year, the slowest growth in six years.
According to the ministry’s statement, the taxes on Western-style clothing will be reduced to 7 percent to 10 percent from 14-23 percent, while tariffs on diapers and skincare products will be cut to 2 percent from 7.5 percent and 5 percent respectively.