Luxury goods auch as watches, cho sticks, wooded floor panels and oil based products will be taxed from April 1, 2006, says Ministry of Finance.
Basic idea behind this move is to curtail consumption, save environment, save timber sources and foremost reduce the gap between the rich and the poor.
A 5 percent consumption tax on disposable wooden chopsticks, wooden floor panels and a 10 percent tax on yachts, golf balls and golf clubs, besides a 20 percent tax on luxury watches will be imposed sources said.
Naphtha, solvent, lubricant will attract consumption tax at a rate of 0.2 yuan per litre, ministry sources added.
Government will collect only 30 percent of the tax on naphtha and solvent in order to lessen the impact on the industry sector.
There is good news too, for consumption tax will be removed from April 1, 2006, on skin care and shampoo products, the ministry said.
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