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China offers tax incentives for logistics firms

Xinhua | Updated: 2017-05-03 08:23

BEIJING - In a bid to encourage the development of the country's logistics industry, China will offer favorable tax terms to lower the cost of commodity storage for logistics firms, the Ministry of Finance said in a statement released Tuesday.

Tax rates on urban land use will be cut by half for logistics facilities that store commodities such as agricultural and mineral products. The term only applies to facilities that cover an area of 6,000 square meters or above, according to the statement.

The tax cut will be in effect from the beginning of 2017 to the end of 2019. Companies that already paid the extra will receive credit to be deducted from their taxes payable, according to the statement.

China's logistics industry has been growing steadily thanks to government support that promises lower taxes and costs. In 2016, the gross revenue of the sector hit 7.9 trillion yuan ($1.1 trillion), up 4.6 percent from 2015.

China will encourage more sophisticated development of the logistics sector from 2016 to 2020 to bolster economic growth and deepen supply-side reform, authorities said.

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