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China taxes luxury goods
01 Apr 2006
China recently announced twotier "consumption tax" reforms that will see luxury goods taxed by as much as 20%.
The lower end of the luxury tax sees 10% imposed on yachts, golf clubs and golf balls, while high capacity automobiles, luxury watches and hard liquor will be taxed at the top rate of 20%.
According to Ernst & Young, China already has the third largest luxury goods market in the world and it is expected to grow at 20% a year.
