China
        

Media Digests

High tax stifles aircraft leasing business

Updated: 2011-09-01 17:54

By Zhi Yun (chinadaily.com.cn)

Twitter Facebook Myspace Yahoo! Linkedin Mixx

High taxes and a complex approval procedure are restricting the development of the Chinese aircraft leasing industry. The conditions are limiting when compared to aircraft industries in other countries, China Business News reported on Sep 1.

According to the Civil Aviation Administration of China, currently over 30 percent of aircrafts in China rely on leasing from Chinese distributors. With the fast development of China's aviation industry, the annual leasing value is predicted to exceed $10 billion in the next five years, the paper said.

However, for most Chinese airline companies, the 21.42 percent tax for leasing an aircraft is higher than the tax for buying imported aircraft, which is only 5 percent.

The approval process for introducing new aircrafts into aircraft leasing companies is also very complicated, adding more risks to the newly generated industry in China, said the paper.

E-paper

City's dynamic teutons

German cluster gives a fillip, competitive edge to local economy in Taicang

Short and sweet
Game for growth
Character reference

European Edition

Specials

Hunting grounds

Opinion divided as China debates opening door to international players

Flying the TCM flag

A small German town is home to Europe's flagship clinic for traditional Chinese medicine

Animal attraction

World's youngest chief fur designer set to launch own label and tap into huge China market.

Sowing the seeds of doubt
Lifting the veil
Exclusive attraction