Chinese logistics body urges VAT exemption on forwarding services

China’s social organisation of logistics industry, China Federation of Logistics and Purchasing (CFLP) called on the State Administration of Taxation to exempt international freight forwarding services from Value-Added Tax (VAT) as the industry is suffering losses due to increases in port charges, cargo handling fees, cargo inspection charges, and container freight rates. The 6% VAT is being collected from August 1, 2013 on all air and ocean freight charges to be paid in China according to the ''Tax Policy of Value Added Tax (VAT) Pilot Program on Transportation & Modern Services Sector'' jointly issued by the Ministry of Finance (MOF) and the State Administration of Taxation.