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China cuts import taxes on large equipment spare parts

(Xinhua)
Updated: 2008-09-14 10:58

The government has cut back on import taxes on spare parts of large equipment and canceled the import tariff exemption on some complete sets.

The adjustments were made to support the domestic manufacturing of large equipment, said the Ministry of Finance.

Taxes levied on domestic enterprises for importing key spare parts of large equipment, including ultra- and extra-high voltage transmission equipment and transformers, large petro-chemical equipment and large coal-chemical equipment, would be refunded and injected into the enterprises as investment from the nation, it said.

The policy applied to imports after January 1, 2008, depending on the date of declaration of imports.

In the meantime, the import of some complete sets of equipment by enterprises approved after September 1, 2008 would no longer enjoy the tax exemption. Both domestic and foreign-funded projects are subject to the new policy, the ministry said.

Imports of such equipment by enterprises approved before September 1 would continue to enjoy the previous tax policies until March 1, 2009.