ISLAMABAD: China is set to extend some preferential tax policies and continue to implement zero tariffs on coal imports until the end of 2023.
China slashed tariffs on coal to zero in April last year in the face of increasing concerns over domestic energy security and supply disruptions.
Increased imports
The country’s coal imports in the first 60 days of this year surged 71% from the same period last year, as utilities increased purchases of cheap thermal coal from South East Asian country Indonesia while arrivals from Mongolia also surged after the easing of COVID-19 restrictions, Arab News reported.
China will also slash some taxes for small companies and individual businesses as well as extend such favorable policy until the end of next year.
Other preferential tax policies include a slash in research and development tax and a halving logistics companies’ tax on warehouse land for bulk commodity storage facilities in urban areas.
The cuts are likely to reduce the total burden by over 480 billion yuan ($69.80 billion) a year.
