China's finance ministry wants people to spend more in the country, so much that it plans to cut current import taxes by half.  

The ministry announced on Monday that the lower import tax rates will be effective on June 1, China Daily reported. The decision stems from the State Council's announcement in April that officials were considering reducing import tariffs.

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According to Xinhua, import tax on suits will be reduced to be in the range of seven percent to 10 percent, from the previous range of 14 percent to 23 percent. Meanwhile, the new import tax for sneakers would be down to 12 percent, from the previous 22 percent to 24 percent. The imposed import tax on cosmetics has been reduced to two percent from five percent, while diapers will also have a two percent tax, down from about seven percent.

Citing data from Bain & Company, China Daily reported that about 55 percent of all luxury products bought online in 2014 were overseas purchases. About 15 percent of the purchases, which amounted to ¥380 billion, was made through shopping platform Daigou.

According to its website, Daigou is registered in Singapore but specializes in providing online shopping services for consumers in China and Taiwan.  

“It can be encouraging for overseas brands who are looking to enter the Chinese market. Mintel’s consumer research shows that, in categories such as baby food, personal care, household appliances and digital products, Chinese consumers show a clear preference toward international brands over domestic brands," Laurel Gu, senior lifestyle analyst of research firm Mintel China, told the publication. 

Gu added that the lower import taxes spell good news for international brands that have local shops.

The Chinese government is expected to implement more easing measures to spur economic growth, as the country's economy during the first quarter of 2015 was down 7.3 percent from the previous quarter.

TagsChina import tax, Ministry of Finance, china import tax luxury goods