Bangkok Shipowners and Agent Association

Bangkok Shipowners and Agents Association
To represent and promote the views and policies of the Association to the Thai Government and all other governmental official and non-governmental bodies which may be concerned with shipping.
Home News World Shipping News Sinotrans sees US$2.05 million in savings as China cuts warehouse tax 50pc
Sinotrans sees US$2.05 million in savings as China cuts warehouse tax 50pc PDF Print E-mail
Friday, 10 February 2012 06:36
Shpg Gazette 10/2/12

CHINA Ministry of Finance has officially announced 50 per cent reduction in
using tax of land for warehousing purpose from January 1 to December 31
this year, including, Xinhua reports.

According to the announcement, warehouse-use land includes all warehouses,
distribution facilities, open or sheltered cargo yard, oil tank and land
for cargo railway, terminals, roads, loading and discharging areas.

Before the tax reduction, land-using tax according to national regulation
ranges between CNY1.5 (US$0.24) to 30 in major cities, between CNY1.2 to 24
in medium cities and CNY0.9 to 18 in small cities, double the standard back
in 1998. But the tax is still higher de facto due to different regulations
in different cities.

A calculation by Chinese mainland newspaper First Financial Daily based on
state-owned logistics operator CMST Development's annual results in 2010
showed that the company can save up to CNY30 million's tax with the
reduction, accounting for 10 per cent of its net profit in 2010.

Sinotrans has also done a calculation, which shows that the new regulation
can help it save CNY13 million (US$2.05 million).

However, an analyst from Pingan Securities points out that as most of the
warehousing service providers are renting facilities instead of owning
them, it is still not sure whether the rent will fall with the reduction
under current circumstances of shortage of land and facilities.