Government to revamp logistics sector
June 30, 2011 Category Logistics, Logistics industry
The Chinese government has unveiled eight measures to try to bring more orderly development to the nation’s logistics sector, such as cuts in road tolls for truckers and smoothing out taxes levied on various segments of the industry. At present, rules governing logistics operations are divided up among numerous government departments. The government has now pledged to unify business tax rates on different steps of the supply chain. At present, for example, there is a 3% tax on transport and a 5% tax on warehousing and freight forwarding. If the government were to unify those rates to just 3%, warehousing companies could raise their operating profit margins 2 percentage points to 9.95% and net profit margins by 1.5 percentage points, Haitong Securities Co said. The government also said it will expand a pilot program to exempt logistics companies from multiple collection of taxes. At present, different companies with varying functions in the process of shipping a load of goods, including transport, distribution and warehousing, are all taxed on the same delivery. The National Development and Reform Commission (NDRC) and the State Administration of Taxation (SAT) in 2005 began a pilot program to end the multiple taxes on the supply chain, but at the time, only 593 companies were included. Today, there are more than 60,000 logistics firms operating in China. Last year, the logistics sector accounted for 18% of China’s gross domestic product (GDP), double that of developed countries, said He Liming, Director of the China Federation of Logistics and Purchasing. Highway tolls, accounting for one-third of logistics costs, are expected to be reduced under the new proposal, and an electronic toll system will be extended to allow trucks to pass through toll areas without stopping. High tolls and fuel costs often force truckers to overload vehicles. The new stimulus plan also calls for improvements in land use policies to allow expansion of convenient warehouse siting, the Shanghai Daily reports.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world