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New taxes trigger mixed reactions in Shanghai

Reporter: Yuan Chenyue 丨 CCTV.com

04-09-2016 04:48 BJT

ICS Reporter Yuan Chenyue has talked with some local buyers and e-commerce managers about how the new taxes will affect them.

As soon as he heard about the country's decision to levy taxes on cross-border e-commerce websites, Yu Wansong began shopping for his family. He spent about 2,000 yuan on goods such as skincare products before prices rise.

"I started to buy in things last month. In the future, I will still buy things on cross-border e-commerce websites as they are convenient. If I directly buy things from overseas websites, I need to pay a lot in delivery fees. But I'll also consider individual sellers if I want to buy expensive products," said Yu Wansong.

Consumers have mixed views on how much effect the new tax will have on them.

"The new tax rules will not affect me too much. I usually just buy some overseas vitamin products, and only spent about 2,000 yuan a year," Ni Kaiyang said.

"Besides quality, price is my major concern. So I might give up some products on those websites if the prices are higher than the average level," Huang Wen said.

The new tax rules are designed to create fair competition between domestic and overseas e-commerce websites. Many business people expect the new rules to have a big impact on what companies do going forward.

"Many popular cosmetics with lower prices will be affected. For instance, the price of goat's milk soap is around 30 to 39 yuan, but with an 11.9 percent tax, it will rise to over 40 yuan. Although the price is still not high, the increase is over 10 percent, still affecting consumption desire," said Lu Jun, BL.com.

Lu says the taxes will force websites to do a better job of finding good products and keeping costs in line in order to make a profit.

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