China cancels 10 favourable tax policies, adjusts 12 others

SHANGHAI (AFX-ASIA) - The State Council has approved the cancellation of 10 favourable tax policies, and the adjustment of a further 12 tax policies, the China Securities newspaper reported.	    Among the 10 policies to be cancelled is one which entitles wholesale enterprises to a full rebate of value-added tax charged on the wholesale of meat, poultry, eggs, aquatic products and vegetables.	    The 12 policies to be adjusted include one which states that companies making use of refuse and old goods in their production are entitled to a 70-pct rebate on VAT.	    The new policy will entitle these companies to a full waiver of VAT, and will entitle companies buying products made from old goods to offset 10 pct of the cost of purchasing these goods.	    Another of the policies to be adjusted involves companies which were relocated inland during the 1960s for strategic reasons, and since returned to coastal areas.	    These companies currently enjoy a rebate of VAT and business tax, but will subsequently only be entitled to a rebate of VAT.	    Another policy change will entitle all companies which make use of wood offcuts to a VAT rebate.	    Currently only state-owned forestry enterprises are entitled to this rebate, it said.	    The State Council also gave approval for the continuation of a further 21 favourable tax policies which were due to expire at end-2000.	    The tax adjustments were proposed by the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs, the report said. 

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