CHINA will impose a consumption tax on disposable wooden chopsticks and on luxury items such as yachts and golf clubs, but will no longer tax soaps and shampoos.

The Finance Ministry announced the change in policy, which takes effect April 1, Tuesday (Mar 21).

Buyers of yachts, golf balls and golf clubs will face a 10 percent tax, while luxury watches will be taxed at a rate of 20 percent.

The move is aimed at "promoting environmental protection and economizing on resources while better guiding the production and consumption of certain products," the ministry said on its Web site www.mof.gov.cn.

The current tax on skin care and hair care products will end April 1. That tax was imposed in 1994, when such products were still considered luxuries. Thanks to China's rising level of affluence, they are now viewed as daily necessities.

The 5 percent tax on disposable wooden chopsticks and on wooden floor panels is intended to discourage consumption of items that are blamed for wasting scarce timber resources, the ministry said.

China makes about 15 billion pairs of throwaway chopsticks a year, consuming some 2 million cubic meters of wood.

To discourage waste of petroleum products, the government will levy taxes on naphtha, solvents, lubricants and aviation fuel, the ministry said.

China's most common hard alcohol, known as baijiu, will be taxed at a flat level of 20 percent for the first time, the ministry said.

Editor: Wing