Ministries address wide range of issues

Departments and ministries under the State Council, China's cabinet, have responded to a wide range of public concerns during the past week by implementing an e-commerce tax policy, introducing more social insurance pilot programs, making it possible to use municipal transit cards in different cities, and commenting about the employment pressure facing new graduates.

The Ministry of Finance addressed concerns about the taxation of purchases made from e-commerce businesses by introducing a new tax policy. The policy will be applied to purchases made since April 8 and is aimed at leveling the playing field so that e-commerce platforms and traditional retailers and importers are treated similarly.

Under the new rules, retail goods purchased online will no longer be treated as personal postal articles but will now be handled, for taxation purposes, as imported goods. As a result, purchasers will have to pay relevant tariffs, import VAT and consumption tax.