China’s Ministry of Finance announced Friday that it will lift the tax-free ceiling for personal cross-border e-commerce retail purchases to RMB 5,000 (around $720) from RMB 2,000, for certain goods.

A person’s annual tax-free total purchases shall not surpass RMB 26,000, a 30% increase compared to the current RMB 20,000 threshold, the ministry said.

The new regulation will be implemented on January 1, 2019, the same day as the new Electronic Commerce Law. The increase is meant to reflect wider shifts in consumption patterns, where Chinese consumers are increasingly willing to purchase more high quality goods, the ministry added.

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Runhua Zhao

Runhua Zhao is a technology reporter based in Beijing. Connect with her via email: runhuazhao@technode.com