Tax exemptions at CIIE to boost international commerce

Compared with the first and second CIIE, where the import value-added tax and consumption tax were levied at 70 percent of what would otherwise be the payble amount, the third CIIE is waiving these two items "in a bid to create a greater sense of gain for exhibitors and traders, thereby enhancing the expo's role as a vehicle to increase imports and optimize the structure of imported goods", according to the CIIE Bureau.

The tax policy will become a CIIE fixture from the third edition on, which "demonstrates China's firm commitment to opening up further and is set to ensure the high standards of the expo", according to the CIIE Bureau.

Wang said making the tax policy a fixture will help stabilize exhibitors' expectations and enable them to prepare their CIIE plans accordingly in advance. "Companies will be able to set their production targets for a relatively more predictable future, which helps to ensure their normal production and operation," Wang said.

Exhibitors at the third CIIE have welcomed the tax exemptions.

Construction machinery provider Wirtgen is attending the CIIE for the first time this year. One of its latest products, the cold recycler W 380 CR, is eligible for the tax exemptions, according to a representative of the Germany-headquartered company.

"The tax exemptions will create tangible benefits for eligible exhibitors by directly cutting the cost of importing their products to China," the representative said.

"Exhibitors on the receiving end of the tax exemptions will be able to offer a more attractive quote for buyers, which will lower their purchasing costs," she said. "The win-win situation will expedite the application of new products and new technology in China and contribute to the technological advances in industry."

The normalization of the tax policy also signals that the Chinese government values bringing in advanced technologies and products from overseas, which boosts companies' confidence in the Chinese market, the Wirtgen representative added.

She said Wirtgen hopes the tax policy is here to stay and that the application and approval process will be more efficient and standardized.

Li Yang, head of the CIIE team at United States-based diagnostic solutions provider PerkinElmer, said, "The normalization of the tax policy enables our company to prepare its CIIE plan in advance. Knowing the policy will be implemented at future CIIEs, we will be able to make a stronger case for introducing to China the most advanced products from overseas."

Having the best exhibits on display will in turn draw more visitors, who will potentially bring sales, Li added. He said his company hopes incentive policies for buyers can also be rolled out to further cooperation among all parties.