Chinese lawmakers review draft law on ship tonnage tax

BEIJING -- Chinese lawmakers began the review of a draft law on ship tonnage tax Tuesday, which will replace a regulation from late 2011.

The draft law was given a first reading at the bimonthly session of the Standing Committee of the National People's Congress, which started Monday.

China will impose the current tonnage rate in line with the regulation, which divides tax items into four categories according to net tonnage, according to the draft.

The draft also stipulated that taxes will be exempt for police vessels, and those with payable tonnage taxes of less than 50 yuan ($7.5).

From 2012 to 2016, tonnage tax revenue totaled 22.46 billion yuan. Four percent was collected from mainland domestic ships, 15 percent from Taiwan, Hong Kong and Macao ships, and the rest from foreign ships.