MNI China Press Digest July 3:Tax Reform, Car Sales, Logistics

Highlights from Chinese press reports on Wednesday:

• China will promote a new round of fiscal and taxation reform, said Finance Minister Lan Fo’an as he delivered a report on the 2023 central government final accounts, National Business Daily reported. Going forward, authorities need to improve the local tax system, and the rules for central and local tax sharing, the newspaper said, citing Lv Bingyang, director of Institute of Finance and Taxation, Renmin University. Experts believe consumption tax, which is currently exclusively collected by the central government, has strong chances for reform, with Shi Zhengwen, professor at China University of Political Science and Law noting authorities could move the tax collection process from the production to sales stage, starting with high-end watches, precious jewelry and jade.
• Car dealers have reported less than 20% of customers inquire about the old-for-new trade in policy, with an actual transaction rate of less than 10%, according to Fan Yu, a senior leader at the China Automobile Dealers Association. Fan expects passenger vehicle sales to reach around 1.75 million in June, a slight increase from May, and noted the current price war trend was intensifying, with pressure on luxury and imported brands more prominent. Policy effects would gradually be released in H2 and provide a driving effect on the entire market, Fan continued.
• China's logistic industry prosperity index reached 51.6 in June, marking the fourth consecutive month of expansion, according to the China Federation of Logistics and Purchasing (CFLP). He Hui, chief economist of CFLP, said growth was balanced across China, with the expected business activity index for railway, aviation, and loading sectors reaching more than 54. The new order index for the postal express industry reached more than 60, driven by online promotions and demand for fresh goods, Hu Han, an analyst at CFLP said, adding that overall expectations of surveyed firms was optimistic. (Source: Securities Daily)