A government think tank estimates that consumers sector will generate sales of USD 7.50 trillion (50 trillion CNY) till 2021 compared to USD 4.5 trillion (CNY 30 trillion) in 2015, scmp.com reports.
Ecommerce sales will account for 40% of the total revenue, according to a separate report jointy released by the Chinese Academy of Social Sciences(CASS) and Fung Business Intelligence Centre.
In April 2016 China introduced a new tax regime for cross-border ecommerce, making mainland online shoppers liable for 70% of a slew of VAT taxes previously applied only to wholesalers.
The CASS report also maintains that Chinese consumers’ shift to online as well as overexpansion in commercial properties has driven the country’s brick-and-mortar department stores to close down.
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