Monday, November 29, 2010

Tax puzzle


The disagreement between the General Administration of Customs and the Ministry of Commerce over the legitimacy of a 1,000-yuan tax on iPads purchased overseas and brought into the country for personal use seems to have come to an end. But it should not have ended in the way it has.

In a statement released on Tuesday morning, the commerce ministry said it supports the customs in carrying out its duties, and believes levying the tax is consistent with the latter's duties and current conditions.

Before that, the ministry sent an enquiry to the customs authorities and expressed concerns about the legitimacy of the tax. The letter pinpointed two concerns shared widely by ordinary citizens. First, both the sum and rate of the tax imposed on iPad units brought into the country for personal use are too high. Second, the after-tax price of iPad units has been over-estimated.

The official reply from the customs, though simple and assured, sounded lame to most. Instead of presenting a convincing clarification of the composition of the blanket 1,000-yuan levy, it said the sum was determined in consideration of passenger convenience at customs.


Link: http://www.chinadaily.com.cn/usa/2010-11/17/content_11562371.htm

Video: http://www.china.org.cn/video/2010-11/16/content_21351948.htm

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