China is considering broadening the scope of its consumption taxes to cover more luxury goods. This announcement comes as Chinese consumers are set to make up a third of luxury consumption globally by 2015, up from 27 percent in 2012.
China already has consumption taxes on different products, including taxes up to 5 percent on gold, silver, platinum and design jewelry 20 percent for high-end watches. Gem sets are accountable to a 10 percent customer tariff. Consumption taxes are also likely to be increased for items that cause heavy pollution and for products that use excessive amounts of energy.
