The Chinese government is considering cutting taxes on the
import and leasing of aircraft to bring the country into line with
international standards, according to a senior official with the
Civil Aviation Administration of China (CAAC).
"China's tax on the import and leasing of aircraft is higher
than most countries in Europe and the US. Many European countries,
such as Germany and UK, levy no taxes on aircraft imports, so we
are considering cutting the tax," Sha Hongjiang, CAAC vice director
of planning and development Department, said on Wednesday.
Tariffs and value added tax on aircraft imports ranged from 5.04
to 22.85 percent. Buyers must pay 5.04 percent of the price of an
aircraft with a deadweight of more than 25 tons and 22.85 percent
below 25 tons.
The withholding tax on aircraft leasing ranged from seven to ten
percent of hire charges, while the value added tax on aviation
materials was 17 percent, said Sha, without giving details on the
tax cut plan.
Sha made the remarks at the ongoing China Aviation Congress
2007, which has the theme "Bringing innovation to China's aviation
industry".
By the end of September, the total number of commercial aircraft
in China was 1,099.
(Xinhua News Agency October 24, 2007)