Can tariffs eliminate the spread of luxury goods at home and abroad?

There is a heat discussion these days about whether it is reasonable to lower the tariffs of high-end goods, including luxury goods. The ministry of Commerce and the Ministry of Finance each held a very different view. The former said that the tariffs should be cut, but the ministry of finance held the opposite opinion. However, despite all these arguments, one thing is certain; the adjustment of import tariffs would not eliminate the spread of luxury goods at home and abroad.

Tariff is not the only reason caused the high price of luxury goods in mainland. Different tax structure, higher logistics and marketing costs, supply and demand relations, lacking of local international consumer brands, all those factors accounts for the situation which domestic price of luxury goods is higher than abroad.

Source: Caing.com

Translated and edited by Peng Bo. Write to him at pb.bloomberg@gmail.com.

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