The state applies tax relief to foreign-funded enterprises for importing machine tools

The import of international machine tool products has produced a considerable impact on the domestic machine tool industry, which is not conducive to the growth and transformation of the domestic machine tool industry. Recently, the state's adjustment of the tax exemption policy for imported machine tool foundry equipment by foreign-funded enterprises will, to a certain extent, reduce foreign-funded enterprises' imports of machine tool products and ease the growth of domestic machine tools.

According to relevant media reports, due to the cold weather of the financial crisis in recent years, the chills around the machine tool equipment foundry industry in China have been difficult to disperse, resulting in a significant drop in the export profits of domestic machine tool casting products. Recently, according to the relevant regulations of the state, adjustments have been made to the policy of tax exemption for foreign-funded enterprises importing machine tool casting equipment. This means that foreign companies that import these equipment will not be able to enjoy the exemption from customs duties and value-added tax as they have in the past. This is an intangible protection for the domestic foundry industry, providing a buffer zone in a fierce market environment.

It is reported that after the adjustment of policies, newly approved foreign-funded projects will be subject to tariffs if they import CNC machine tool foundry products and pressure forming machines listed in the “Not for Tax Exemption from Domestic Capital”. In other words, foreign-funded enterprises can only enjoy the relevant preferential treatment by importing CNC machine tools and pressure forming machines whose domestic existing technologies cannot meet the requirements of the index. This is undoubtedly a rare opportunity for the vigorous development of China's machine tool casting equipment. China's machine tool foundry equipment is in urgent need. Seize the opportunity to promote the better development of domestic machine tool casting equipment.