High taxation on the Chinese mainland is being blamed for the record $7.2 billion spent on luxuries overseas during the New Year, the Beijing News reported on Friday.

For example, a watch imported from Switzerland sold at 2,700 yuan ($401) in China, includes value-added tax 392 yuan, excise duty of 623 yuan and custom tax of 267 yuan. Prices of some Chinese products are higher in China than in the US because of the high domestic taxes, the report said.

The report also cited experts saying tax on commodities in China is 4.17 times compared with that of the US, 3.76 times Japan and 2.33 times European Union countries.