Forwarders in China fear for their survival as they are impacted by major new tax

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The introduction of a new 6% VAT charge in China this month will have a major affect on local Chinese forwarders, especially those who conduct a significant amount of CIF business, according to a range of small and medium-sized logistics providers in the country.

With Chinese growth slowing in the past 12 months as the general costs of manufacturing increase, Chinese forwarders will have to adapt to the changing conditions and new taxes if they are to survive.

“The new VAT tax ...