From April 1, 2019, China’s State Council decided to adjust the value-added tax (VAT) rates: regarding import goods, original VAT rate of 16% is reduced to 13% and the original rate of 10% is reduced to 9%. In the past year, Jinan Customs District has reduced 7.688 billion yuan of VAT from local 1,867 importers.

In accordance with the State Council’s decision, Jinan Customs has been implementing the tax/fee reduction in a timely and precise way to optimize port business environment, in the benefit of local importers and exporters.

According to Shandong Tianhong Chemical Co., Ltd., one of the policy beneficiaries, the tax cut policy has greatly improved its financial status, enabling it to invest more in technological development. So far, the Company has enjoyed tax cut by more than 340 million yuan in its imports.