Life in China is about to get noticeably more expensive – 6 percent more expensive, to be precise.
As of Sunday 1 May, a new VAT (value added tax) system will be implemented nationwide across all industries. It's not yet certain how this will impact pricing of different products and services, but what we do know is that it means things are going to be more expensive across the board.
One group that is already preparing to charge for the new VAT is the luxury hotel industry. Many hotels in the city already have signs informing customers of the new charge.
The changes were finalised during the Two Meetings as part of the gradual economic reforms aimed at stabilising the economy, reported People’s Daily
. The reform is hoped to smooth the economic transition China is undergoing, but the bad news for us is this does not translate into benefits for the sad-luck consumer.
Whether companies decide to swallow the 6 percent rise or pass it on to the consumer is not yet clear. Is your Big Mac about to cost an extra 1RMB? Watch this space...
A future with less money, President Trump and no Purple Rain sure seems like the expedited road to clinical depression. So let’s all close our eyes in denial and go to our happy place with these GIFs before enjoying our last VAT-free days.