BEIJING, May 2 (Xinhua) -- In a bid to encourage the development of the country'slogistics industry, China will offer favorable tax terms to lower the cost ofcommodity storage for logistics firms, the Ministry of Finance said in astatement released Tuesday.
Tax rates on urban land use will be cut by half for logisticsfacilities that store commodities such as agricultural and mineral products.The term only applies to facilities that cover an area of 6,000 square metersor above, according to the statement.
The tax cut will be in effect from the beginning of 2017 to theend of 2019. Companies that already paid the extra will receive credit to bededucted from their taxes payable, according to the statement.
China's logistics industry has been growing steadily thanks togovernment support that promises lower taxes and costs. In 2016, the grossrevenue of the sector hit 7.9 trillion yuan (1.1 trillion U.S. dollars), up 4.6percent from 2015.
China will encourage more sophisticated development of thelogistics sector from 2016 to 2020 to bolster economic growth and deepensupply-side reform, authorities said. Enditem
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