Import VAT slashed for certain sectors in the Shanghai FTZ
China’s Ministry of Finance clarified new import tax policies in the Shanghai Free Trade Zone (FTZ) on October 24. For example, if Shanghai FTZ registered domestic leasing companies and their subsidiaries make an authorised purchases by aircraft of over 25 tonnes from aboard to lend them to domestic airlines, they can get a 5% import value-added tax rate for the purchases, far lower than the normal 17% rate. Rules have also been issued on goods intended for the domestic market, manufacturing equipment, consumer services, and bonded trading platforms.