Taiwan Will Cut Taxes On 267 Mainland Products By &Nbsp, And Benefit Textile Products.

In June 28th, "18 Taiwan agricultural products will benefit from this early harvest plan. These agricultural products now have an average tariff of 13.3% and will drop to zero in three years, which is good news for us."

Li Yongxin, general manager of Taiwan all through group, Yi Mao Trade Co., Ltd., and executive director of Guangdong Qingyuan Association of Taiwanese businessmen, said in an interview with reporters.

The Ministry of Commerce revealed on 25 th that the commercial negotiation of Cross Strait Economic Cooperation Framework Agreement (ECFA), which has attracted much attention from agricultural products, has been completed and relevant business issues have been agreed.

The Ministry of commerce also revealed that after consultation, the two sides, based on the complementarity of the two sides' industries, reached a large scale and broad coverage of the early harvest plan on the basis of fully considering the concerns of the two sides.

In the early harvest plan of ECFA, the mainland will reduce taxes on 539 products originating in Taiwan. Taiwan will reduce taxes on 267 products originating from the mainland.

At the same time, the mainland will expand its opening up to Taiwan businesses in 11 service sectors, such as hospitals, banks, securities and insurance.

In the early harvest of trade in goods, the mainland will reduce taxes on 539 products originating in Taiwan. In 2009, the mainland imported 13 billion 830 million of the products from Taiwan, accounting for 16.1% of the total imports from the mainland, including ten categories, namely, agricultural products, electronic products, auto parts and so on.

Taiwan will reduce taxes on 267 products originating from the mainland. In 2009, the amount of the products imported from Taiwan from the mainland in 2009 amounted to US $2 billion 850 million, accounting for 10.5% of the total import volume of mainland China in that year.

Taiwan's tax reduction products on the mainland include petrochemical products, machinery products,

Li Yongxin said that he had learned from the relevant departments of Taiwan about the general situation of reducing taxes on agricultural products. 18 Taiwan agricultural products will benefit from it, including pitaya, orange, tea, saury, Wen Xinlan cut flower, Flammulina velutipes and other agricultural and fishery products, while the mainland's agricultural products did not enjoy the tax reduction treatment this time. We can see that the mainland has made great concessions to Taiwan businessmen.

{page_break}

Li Yongxin also said that lowering taxes would help Taiwan's agricultural products to expand the mainland market. For example, the 17% tariff plus 17% business tax of Taiwan's tea entering the mainland will greatly enhance the competitiveness of Taiwan's tea after the 17% tariff is removed.

"As a whole, there should be no impact on the mainland's agricultural products. These are characteristic agricultural products of Taiwan, which are different from those of the mainland. For example, Fujian has the cut flowers of the orchid, but the varieties and the market are not the same.

Since 2005, the mainland has imported zero tariff measures to 18 kinds of fruit, such as pineapple, litchi, papaya, wax apple and so on. From the past few years, Taiwan has not attacked the fruits of the mainland, but has enriched the fruits of the mainland.

Li Yongxin said.

Taiwan's electronic products are also listed in this tax reduction product.

Tang Zhengcai, the head of Dongguan Taiwan funded enterprise Electronics Co., Ltd., yesterday interviewed by our reporter, said that he had pferred all electronic production in Dongguan to Dongguan, so this time it will not directly benefit from it, but it will not be affected.

Tang Zhengcai said: "at present, the electronic products that are still in Taiwan are all high-end products, and the products that are relatively low end produced by us are not competing at the same level."

To make Taiwanese businessmen happy, not only will they benefit from the tax reduction of products, but the mainland will expand the opening of Taiwan's enterprises to 11 service sectors, such as banks, securities and insurance, which will also be beneficial to the economic and trade cooperation between the two enterprises.

Li Yongxin reflected that many of the Taiwan enterprises that had already developed on the mainland were not able to mortgage loans to mainland banks because of their land and factory buildings on the mainland. While Taiwan banks entered the mainland, Taiwan businessmen could raise mortgage loans in Taiwan property to Taiwan funded banks, which would further promote Taiwanese investment in the mainland and facilitate currency conversion.