State Administration of Taxation: Exemption of Tire Consumption Taxes for Agricultural Vehicles on December 1

The State Administration of Taxation issued an announcement on the 25th that the consumption tax on tires for agricultural vehicles was exempted from December 1. This move will help upgrade the structure of the tire industry, and industry leaders will benefit.

According to the State Administration of Taxation on October 25, the State Administration of Taxation issued an announcement on the 25th that special tires for agricultural tractors, harvesters and walking tractors do not fall under the "car tires" applicable to consumption tax as stipulated in the "Provisional Regulations on Consumption Tax" and no consumption tax is levied. . The announcement will be implemented on December 1, 2010.

At present, China's auto tire consumption tax rate is 3%. It is understood that among the listed tire companies, the production of agricultural tires includes Qingdao Double Star, Yan Tire A, and Fengshen shares. Analysts believe that granting tax-free benefits to tires for agricultural vehicles reflects the state’s encouraging attitude toward producing tires of this type.

In addition to tax incentives, the Ministry of Industry and Information Technology recently announced the "Tire Industry Policy" to encourage the development of safe, energy-saving and environmentally friendly high-performance radial tires. Analysts believe that the "Policy" helps the structural upgrading of the tire industry, in this process, the industry leader will benefit.