Shenzhen hits transport sector with new national VAT from November
Sources of information: Qingdao Jinhan International Logistics
Date Time: 2012-11-07
SHENZHEN is to start a pilot scheme of the new national value added tax in the transport and service industry sectors on November 1, Xinhua reports.
Meeting concerns about higher taxes among logistics operators, the Shenzhen government will introduce supporting measures during the break-in period.
Shanghai has already started its trial run. Statistics show that tax burden of 90 per cent of the companies who take part in the scheme have been mitigated. There will be 60,000 companies participating in the scheme in Shenzhen. It is predicted that about CNY3 billion (US$479.5 million) to CNY5 billion tax will be reduced for these companies.
But the new tax scheme will have the reverse effect, said the logistics sector. If subsidies are not provided, then tens of thousands of the small and medium logistics companies will face hardship, even bankruptcy, according to the Shenzhen Logistics Association secretary Zheng Yanling.
