An initiative by the General Administration of Civil Aviation of China (CAAC) and other departments is underway to cut taxes on foreign aircraft rentals, an official from CAAC said on Tuesday at the China Aviation Congress 2007.

Currently, the imported aircrafts for rent are subject to one inclusive tax comprising tariff value-added tax (5.04-22.85 percent), withholding tax (7-10 percent) and material value-added tax (17 percent).

"The US imposes a tariff value-added tax of less than 1 percent, while some western countries and Japan have even scrapped the tax," the official said. "No matter whether it is for rent or purchase, the tax slapped on imported aircrafts in our country is relatively high."

For more details, please read the full story in Chinese. (http://www.bbtnews.com.cn/news/channel/political30611.shtml)

(China.org.cn October 24, 2007)