Bosch Automotive Diesel Systems’ Wuxi operation saved 1.62 million yuan ($246,000) in January-May thanks to a policy recommendation proposed by Wuxi Customs to cut import taxes on diesel engine parts, Wuxi Daily reported.
Officials from Wuxi Customs said that they proposed a research report on the issue to the Customs Tariff Commission of the State Council after conducting extensive research. Last December the commission approved to cut the tax rate on diesel fuel injection parts to 5 percent.
Wuxi Customs has long been dedicated to the reduction of tax burdens faced by exporters.
An employee from Bosch Automotive Diesel Systems said that the import tax rate in 2015 for a complete diesel fuel injector was 5 percent while that for related parts and components reached up to 8.4 percent, pressuring production costs and the prospects of upgrading technologies.
Wuxi Customs has also submitted several tax adjustment proposals concerning emerging and traditional industries including medicine, automobile manufacturing and cotton textiles, in a bid to optimize regional industrial structure and boost the development of the new industry of high-tech content, high added value and low energy consumption.