China to Cut Import Tax on Food, Medicine

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May 30 – China is set to cut import taxes on food and medicine to help reduce inflation and aid those affected by the earthquake.

Pork tariffs will be slashed by half to six percent beginning from June 1 to December 31 along with taxes on cod fish and baby food to two percent from a previous six percent.

The government will also stop charging a three percent import tariff on medical items such as blood serum products and human vaccines during the same period.

Other goods affected by the reduced taxes include high-quality cotton at RMB357 per tonne from a previous RMB570.

The government did not specify how much of the country’s imports will be qualified for the tariff reductions.

Sources report that the decision came as a way to ease supply needs during the quake relief work.

The 8.0 magnitude quake that hit southwest China on May 12 has left an estimated 88,000 people dead while leaving 15 million others displaced.
As of Thursday this week, total quake donations have reached RMB37.3 billion (US$5.38 billion).

The government has already warned officials that a special statute will seek to punish those guilty of abusing relief goods and donations.