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Import tax on iPads should be reduced

0 CommentsPrint E-mail China Daily, November 15, 2010
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The imposition of a 1,000-yuan ($150) import tax on Apple iPads has triggered a heated debate among the public. Though most imported goods must be taxed, the tax on items of personal, as opposed to commercial, use should be lighter, says an article in China Youth Daily. Excerpts:

People returning from abroad with newly bought iPads have been complaining about the high import tax. They say the import tax of items of personal use should not be so high.

The main purpose of imposing a high tax on some imported goods is to curb smuggling. But people bringing in goods for personal use are not smuggling them and hence, should not be treated the same as smugglers.

Besides, the tax authorities have imposed the 1,000-yuan iPad tax assuming that each costs 5,000 yuan ($750).

But iPads are available for about 4,000 yuan in Hong Kong. Also, the import tax should be 17 percent of the total value of an iPad, instead of the 20 percent being charged now.

There are people who may argue that the import tax on some goods have to be high to protect the interests of domestic industries. It is true that home industries will suffer if smuggled goods flood the domestic market. But does that logic apply to iPads?

Instead of curbing smuggling, the high tax on iPads is making its users lose money, which is against public interest.

 

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