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China expands pilot policy of selective tariffs on domestic sales

Updated: Apr 15,2020 06:54 PM    Xinhua

BEIJING — China will expand the pilot policy of selective tariffs on domestic sales to all comprehensive bonded zones from April 15, amid efforts to relieve the tax burden on export enterprises.

The announcement was jointly made by the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration.

The move to expand the pilot policy of selective tariffs can help cut the tax burden on enterprises, stabilize foreign trade and expand domestic demand, said He Daixin, deputy director of the financial research office of the National Academy of Economic Strategy of the Chinese Academy of Social Sciences.

The policy, according to the GAC, will allow manufacturers operating in bonded warehouses and selling their products to the domestic market to declare their products either as imported raw materials or as finished or partly finished products, depending on their assessment of the convenience and the tax pressure on their companies.

On the same day, the MOF also announced to exempt interest on tax deferred for domestic sales of processing trade enterprises from April 15 to Dec 31 in a bid to stabilize processing trade.

The tax policies are expected to help export companies survive the decline in overseas orders and explore the domestic market amid the global fight against COVID-19.