Tax policy won't derail online retail sector

China's new taxation policy targeted at imported goods sold on e-commerce platforms has drawn a lot of complaints from dealers as well as consumers, but it will not prevent the industry from expanding at a fast pace.

Last month, the government announced higher taxes would soon be imposed on most products imported by domestic e-commerce companies. On April 7, the Ministry of Finance unveiled a list of more than 1,100 imported items targeted by the new tax policy. Not surprisingly, many believe the move will deal a heavy blow to domestic e-commerce players since consumers will be forced to pay more for shopping online.

The new tax policy will, no doubt, make imported products more expensive on e-commerce platforms, including baby formula, home appliances and clothes and shoes. But given China's fast expanding middle class and high-income groups, the ripple effects of the policy will soon fade as online shopping, especially those for imported products, continues to increase in China.