(State Administration of Taxation: 9 June 1994 Coded Guo Shui Fa[1994] No. 142)

(State Administration of Taxation: 9 June 1994 Coded Guo Shui Fa[1994] No. 142) Whole Doc.

To the tax bureaus of various provinces, autonomous regions and municipalities, to the tax bureaus of various cities with independent planning, and to the tax bureaus of Harbin, Shenyang, Xian, Wuhan, Guangzhou, Chengdu, Changchun and Nanjing: Recently some regions and departments stated that before implementation of the new tax system, value-added tax was levied on prickly-heat powder and talcum powder set up independently as specific items which do not come under the levying scope for skin and hair care articles. After implementation of the new tax system, the question as to whether or not consumption tax shall be levied on prickly-heat powder and talcum powder, it is not clearly defined in the Notes on the Levying Scope of Consumption Tax. After study and in view of the fact that previously these two products did not come within the levying scope of tax on skin and hair care products, consumption tax shall not be levied on prickly-heat powder and talcum powder after implementation of the new tax system.

We hereby specially inform you about the matter, please act in accordance with this Circular.