Shandong Preferential Fiscal & Tax Policy Promotes Linkage Development between Manufacturing Industry and Logistics Industry

To accelerate tapping new sources of economic growth and promote the separation between secondary and tertiary industries, Shandong Province of China will implement preferential policies on fiscal & taxation and land so as to push forward the linkage development between manufacturing industry and logistics industry and promote the integration between the two.

With respect to finance and taxation, as to qualified manufacturing enterprises, logistics assets will be separated from the main business for setting up individual proprietorships or joint ventures, or transferred entirely. In the case of transferring all property rights, enterprises shall be exempt from value-added tax and business tax; as to added tax burdens of logistics enterprises separated from manufacturing enterprises, subsidies of equivalent amount shall be offered by financial support at the same level, in the event that such enterprises indeed have difficulties in paying the house property tax and urban land use tax on house properties for their own production and operation, regular reduction or exemption may be provided upon approval.

With respect to land use, the planning on land for logistics construction may refer to relevant policies on land for industrial storage once satisfying the provincial planning for logistics industry and within the industrial agglomeration areas like demonstration area of the new type industrialization, economic development zones, export processing zones, and high and new technology industrial parks.

As planned, by 2015, Shandong Province will mainly support and foster 150 logistics management centers for provincial enterprises, 100 logistics enterprises offering integrated services for manufacturing enterprises, and 50 specialized logistics enterprises for key enterprises; by optimizing the supply chain management of manufacturing enterprises, logistics expenses of enterprises will be reduced to 10% of the total cost with the logistics costs down by over 12% on average.