Powerboat-World.com
 
 
News Home Video Gallery Newsletters Features FishingBoating Photo Gallery Sail-World Australia Australian Cruising
MarineBusiness-World

 

Sail-World.com : New tax on China yachts? More boats looking for Hong Kong berths?

New tax on China yachts? More boats looking for Hong Kong berths?

'A boat tax in China will send more boats to places like Hong Kong - which is already full'    Guy Nowell ©    Click Here to view large photo

Here's a news item from the China Daily today:

Owners of yachts - a luxury that is gaining popularity among China's newly rich - will have to pay an annual vessel tax based on the length of their craft if a draft law is passed by the top legislature. The latest draft of the vehicles and vessels taxation law was submitted to the National People's Congress (NPC) Standing Committee for second reading on Wednesday.


'Based on the principle of taxation determined by law, a user tax for yachts has been included in the latest draft and will be collected according to a vessel's length,' said Zhang Bailin, vice-chairman of the NPC Law Committee, who explained the draft to legislators.

He said the tax on yachts will range from 400 yuan ($61) to 2,000 yuan per meter. The rate of taxation will depend on the specific model of yacht and will be further stipulated by the State Council. Zhang also stressed the necessity of the legislation, saying it improves the taxation system because the current tax on vehicles and vessels has been collected in accordance with a provisional regulation issued by the State Council in 2007.

He Yicheng, a Macao-based businessman and member of the NPC Standing Committee, said on Wednesday during a group discussion that the tax on yachts may need to be higher if it is to have the desired effect of narrowing the gap between rich and poor. 'As high-end consumer goods, yachts are different from normal transportation tools and should be distinguished accordingly through the tax,' he said. 'The tax on a 10-meter yacht is lower than that of a vehicle with an engine larger than 4.0 liters, which is unreasonable.'

However, the draft has triggered concern among yacht dealers, who describe it as 'snow plus frost' on the fledgling industry.

Liu Dianfang, chairman of the yacht industry association in Xiamen, in East China's Fujian province, said the draft law, if passed, will hold back the momentum of the fast-growing yacht industry in China. Liu estimated there are 300 luxury yachts in China that each has a value of 3 million yuan or more. Xiamen, because of its proximity to Taiwan, harbors about 40 luxury yachts and has 11 yacht clubs out of the 23 throughout China.

'The new tax on yacht owners will discourage potential customers and hurt the market,' Liu said, adding that the law should also offer a clear definition of a 'yacht'. He said the definition is needed because, if a private fishing boat that is 4 or 5 meters that cost 20,000 to 30,000 yuan is considered a 'yacht', the tax will be a heavy financial burden on its owners because they will need to pay 1,600 to 2,000 yuan in taxes each year.

Liu's concerns were echoed by the finance manager at a leading yacht importer based in Xiamen. 'We're already heavily taxed with high import duties and a consumption tax adding up to 43 percent, said the woman surnamed Ni. 'We pay 2 to 3 million yuan for smaller yachts and 20 to 30 million for larger ones. It's a growing market that is attracting more Chinese customers. We hope the government will give it more support. Imposing a new tax will not serve that purpose.'

Zhao Yinan and Li Yao, China Daily


This sounds like yet another reason for Chinese boat owners to keep their 'floating assets' well away from China - in places like Hong Kong, where the marinas are are already full, and nobody has any plans to build more. After due consideration, one of Sail-World Asia's friends in the business in this part of the world offered the following comments:

'Such taxation will obviously be detrimental to an industry still in its infancy. Recreational boat and yacht ownership in China is already more expensive than in the most popular and well-developed locations worldwide.

In addition to 8-10% import duties for completed boats (and also components used on domestically-produced boats), there's 17% VAT, plus an additional 10% luxury tax for boats over approximately 30 feet. While domestically-built boats benefit from lower labour rates and shipping costs, duty is levied on imported items, and the same 17%% VAT and 10% luxury tax apply. These fees are compounded and for imported boats, total 43% of boat value including purchase price and shipping. Slip/berth fees in many locations are higher than some of Europe's costliest marinas.

Instead of 'helping to bridge China's income gap,' excessively high user fees will prohibit far greater economic returns than a robust recreational marine industry would provide. Before the global marine slowdown Chinese factories employed thousands of workers who produced boats primarily for export. As a result of the downturn, many factories have reduced their labour forces and operate well below capacity. Many of those factories now focus on China's domestic market; indeed they are depending on internal growth to stay in business.

It's paradoxical that in a nation making major efforts to encourage consumer spending (i.e. domestic growth), some seem intent on slowing a potential new industry which could provide thousands of needed jobs in coming years. One needs only to look back at the ill-conceived 10% luxury tax U.S. lawmakers created in the early 1990s as example for misguided taxation. For those not familiar, it destroyed many thousands of marine-related jobs along many long-standing U.S. boat builders.

Once that tax was removed the marine industry blossomed: factories reopened, new jobs were created, and recreational boating grew with unprecedented speed and vitality. As profits grew, factories paid more taxes, workers earned salaries which spread throughout local economies, and marinas hired more people to service the increased customer needs.

The 10% luxury tax is already sending would-be Chinese boat buyers offshore; prohibitively high user fees will be another 'nail in the coffin.'

Few would question the validity of annual 'user' or 'registration' fees for recreational boats, but they must be realistic. In fact, boat owners would probably gladly pay for increased marine patrols promoting and ensuring greater safety in Chinese waters.'

Make up your own mind...




by Sail-World Asia, and China Daily

  

Click on the FB Like link to post this story to your FB wall

http://www.powerboat-world.com/index.cfm?nid=80810

8:31 AM Fri 25 Feb 2011 GMT






Click here for printer friendly version
Click here to send us feedback or comments about this story.


Power Boat News

The Tauranga Boat Expo has proven a popular attraction for marine enthusiasts outside the main centres. This year, Lancer has chosen to join the show as part of their tour introducing the market to Sea Blade as well as their other exciting products. ... [more]  

Sediments associated with dredging and flood plumes could have a significant impact on fish populations by extending the time required for the development of their larvae, according to Australian researchers. 'Sediment concentrations at levels found in plumes from dredging or in floods cause a significant delay in the development of clownfish larvae,' says study lead author, Dr Amelia Wenger. ... [more]  

Safer Boating Week ended Friday, but with the start of Labour weekend here, there’s no better time to check your boat is safe and prepared to get out on the water over summer. Coinciding with Labour Weekend, new Auckland Council Navigation bylaws also come into effect from Saturday. ... [more]  

NMMA loses E15 fuel U.S. Court of Appeals Decision by National Marine Manufacturers Association
While the battle in the U.S. over E15 might seem a local issue, its plainly has world-wide flow though for the recreationa marine market.The Engine Products Group, a coalition of organizations that includes NMMA, sought to block the EPA decision. ... [more]  

This partnership brings together two truly functional and enthusiastic events for what will become Australia’s premiere 4x4 and marine super expo. But it doesn’t end there. The ethos behind Explore Australia Expo is to substantially grow the consumer pool by enticing and engaging not only the converted enthusiast but also newcomers and those within parallel or fringe categories. ... [more]  

The Barcelona International Boat Show closes its doors in Port Vell this afternoon and confirms a trend towards recovery in the sector. Over the course of five days, the show which presented 120 new products and 650 vessels recorded a large turnover and number of visitors, who were able to take an active part in more than 100 programmed activities. ... [more]  

The famous Henri Lloyd Summer Sample Sale is on again kicking off Friday 24th October 2014 at the Henri Lloyd showroom in Crows Nest, Sydney! Huge range of samples and discontinued lines from Henri Lloyd's marine, footwear and lifestyle collections for men and women. Discounts of up to 80% off original RRP! ... [more]  

There is still time to purchase a copy of the new RYA Advanced Powerboat Handbook by Paul Glatzel and be in with a chance of winning an RYA Advanced Powerboat course courtesy of the Paul’s RYA Training Centre, Powerboat Training UK. ... [more]  

PredictWind have made significant improvements to the swell forecasting models and added new locations. Integrating the new 50km global wind forecast with ocean current data has created the most advanced swell modelling available online. By combining PredictWind forecast data with ocean current data, the effect of the wind on swells can be accounted for ... [more]  

Imagine finishing the Coastal Classic and relaxing in your own waterfront home at Opua with your boat tugging gently on a deep-water mooring off the lawn. Built to an architect design in 2000, this north-facing waterfront Opua property is a short walk to the marina and boatyard. It is going to auction on November 22. View this Labour Weekend after the Coastal Classic. ... [more]  

The event has historically been conducted at the Brisbane Showgrounds, however as a result of the significant construction and redevelopment of that venue, it has presented many operational difficulties in continuing todeliver a high quality event expected by exhibitors andvisitors to an industry boating showcase. ... [more]  

MMC has presented PaddleNSW with 50 new generation lifejackets so its coaches and instructors can help role model behaviour to further encourage everyone on the water to wear lifejackets. 'The lifejackets will be used to kit out PaddleNSW’s network of training staff and volunteers in key locations across NSW,' said MMC General Manager Howard Glenn. ... [more]  

The Australian marine industry is singing the praises of the fourth annual Gold Coast International Marine Expo, reporting strong sales and even greater prospects in the lead-up to summer. 'Based on exhibitor feedback, the total sales at the Expo alone would certainly be in the order of tens of millions of dollars,' she said. ... [more]  

Volunteer Marine Rescue Southport, at the top of the Gold Coast, now has more of both after fitting twin 300 hp Mercury Verado outboards onto it largest vessel, a 9.5 metre Noosa Cat 3100. ... [more]  

2014 Gold Coast International Marine Expo - Marine Syndication, a division of Marine Auctions, was in full swing at the Gold Coast International Marine Expo that took place at the Gold Coast Marine Precinct in Coomera. ... [more]  

UIM Class 1 Grand Prix of Italy 2014 - Sunday, Terracina (Italy): Luca Fendi and Giovanni Carpitella produced a breath taking performance to take their first win together in C1 at the team’s home Grand Prix, with Aquasport’s Daniel Cramphorn and Nico Huybens producing a totally dominant performance to win in V1. ... [more]  

Watchstanders at Coast Guard Sector Hampton Roads received a report from a concerned friend at 10:30 p.m., Friday stating the two men had departed on a planned 20-minute trip, but had been gone for approximately two hours. The reporting source also stated that the men did not have radios or cell phones aboard. ... [more]  

More than 13,000 visitors flocked to Scotland’s Boat Show 2014 (SBS14) at Kip Marina, Inverclyde last weekend as the boating world showed off everything from a £500 dinghy to an £800,000 Sunseeker luxury powerboat. SBS14 is the largest boat show in Scotland and the third largest in the UK and, with over £15m worth of boats on display, there was something for every budget. ... [more]  

Victory and Bernico-New Star took race 1 honours in a dramatic and incident-filled first race at the Grand Prix of Italy, which was stopped after a first corner spin-out by Tommy One after the start lap, forcing officials to bring out the red flag. ... [more]  

2014 Gold Coast International Marine Expo - The awe-inspiring aerial antics of the Extreme High Diving show at this weekend’s 2014 Gold Coast International Marine Expo have a whole new flavour, with McDonald’s signing up as an event partner. ... [more]  

Alongside the line-up yachts and boats by international and local brands, visitors to this year’s Yacht CN will have a chance to enjoy the exciting Moto Surf China Race, passionate samba dances, bikini model shows, international music band performances, and popular international DJ music on-site. ... [more]  

Boyan Slat is a 20-year-old on a mission - to rid the planet's oceans of floating plastic. He has dedicated his teenage years to finding a way of collecting it. But can the system really work - and is there any point when so much new plastic waste is still flowing into the sea every day? ... [more]  

Discover Boating Week starts tomorrow by Boating Industry Association
Discover Boating Week is a celebration of the recreational boating lifestyle and the joys and fun that come with spending quality time on the water. Whether you're a fisherman, paddler or sailor, there is something for everyone. Over 40 events will be taking place across the state from October 18 - 25 and the best part is, they all absolutely free! ... [more]  

Great start to another massive Gold Coast International Marine Expo by Emma Milne/Gold Coast International Marine Expo
The Gold Coast International Marine Expo – open all weekend – is a marquee event for the marine industry and has delivered on its promise of 'all things aquatic – from super yachts and jet skis to kayaks and fishing equipment … and everything in between'. ... [more]  

The 2014 Fort Lauderdale Boat Show is fast approaching and I want to know if you’re planning to attend. If you are, I'd like to let you know about some of our must-see clients. ... [more]  

Boaters are reminded to keep clear of a section of Sydney Harbour on Sunday 26 October for the safe staging of The Australian Boat Race. ... [more]  

The first ever Safer Boating Week (17-24 October) puts the spotlight firmly on ensuring boaties walk the safety talk when they’re out on the water this summer, Maritime New Zealand (MNZ) says. New research, commissioned by MNZ, shows the majority of New Zealanders have good safety attitudes but these don’t always translate into safe behaviour on the water. ... [more]  

2014 Gold Coast International Marine Expo - With less than 24 hours until the start of the three-day 2014 Gold Coast International Marine Expo, the event site is a hive of activity as exhibitors prepare and polish their displays to help you make this summer one to remember. ... [more]  

Reggie Fountain--a legend, a leader and a brand that still defines one of the most historic chapters of Powerboating history. The compelling story of offshore racer and boat builder Reggie Fountain--the man who revolutionized offshore racing with innovations in boat building that still influence the sport today--is told by American Performance Media in its new film documentary, King of Offshore. ... [more]  

Victory and Chaudron top the standings in the UIM C1 and V1 World and European Championships and head-up a 13-strong line-up for the European title decider at this weekend’s Italian Grand Prix in Terracina. ... [more]  

Boats recovery after Sydney storm by Roads and Maritime Services
Roads and Maritime Services Maritime Director Angus Mitchell said Roads and Maritime Services boating safety officers (BSO) had been busy since sunrise in Port Hacking helping with the recovery of more than 10 boats which broke their moorings overnight during stormy conditions. ... [more]  

MMC have donated 300 new generation lifejackets to Rowing NSW so their coaches and instructors can act as ambassadors by wearing them and role modelling behaviour to further encourage everyone on the water to wear lifejackets. ... [more]  

Most boaters start the new boating season safely by Roads and Maritime Services
The results are in from the first boating campaign of the new season with a reminder for boaters to keep an eye on their speed and ensure they are aware of NSW lifejacket laws. ... [more]  

Barcelona Int'l Boat Show - 120+ new products and a hundred activities
F1H2O Worlds 2014 - Qatar Team heads to Florida for more F1 testing
Discover Boating Week opens up opportunities to participate
Riviera owners find paradise in one of seven natural wonders
Changed boating conditions for Yarrawonga Multisport Festival
605 Sportsfish named Australia's Greatest Boats 2015 Finalist!
2014 Gold Coast International Marine Expo - Multihulls set to dominate
Update: Stunning finds from ancient Greek Shipwreck
Teams preparing for Key West 2015 season
Search for victims in challenging marine rescue test
Gold Coast International Marine Expo - Boats to behold … and much more
Sail Canada - Keel and Power Programs at AGM
Superior set for METS and enters Waterscape in DAME Awards *Feature
Roads and Maritime Services seeks proposals for vessel suppliers
Ferretti Yachts 550 comes to light
Vicsail - Boat Show Open Day - d'Albora Marina Rushcutters Bay
Benetti launches Veloce 140 in the Fast Displacement series
The future is now at 2014 Gold Coast International Marine Expo
Grand Prix of China - France celebrates treble in Liuzhou
2014 Gold Coast International Marine Expo - Futuristic and fun toys
Super Boat National Championships - Great conditions for sixth edition   
Genoa International Boat Show 2014 – everything is relative   
GC International Marine Expo: Sirroco RIB + engine up for grabs   
BIA responds to Sydney Marine Park proposal   
TV awareness campaign calls on boaties to be safe on the water   
2014 NSW Discover Boating Week - Set to kick off this year’s summer   
Lifejackets do save lives - Wear yours on board this long weekend   
Recognition for boating community with Maritime Medal Awards   
Sydney Harbour Marine Park would attract Industry compensation claims   
Get set for the Sportjet   
2014 Auckland on the Water Boatshow hailed a huge success   
2014 Gold Coast Int'l Marine Expo: TAFE Marine Training Centre on show   
Dredging of Swansea Channel gets underway   
Barcelona International Boat Show - Ideal platform to launch products   
Have trailer, will travel *Feature   
Auckland On The Water Boat Show: Images from the final day   
British ocean adventuring legend launches round the world record bid   
Auckland On the Water Boat Show: World record mark set on Lancer SUP   
Marine Rescue Forster Tuncurry recognised with Water Safety Week Award   
Marine Rescue NSW wins 2014 NSW Water Safety Awards   


For this week's complete news stories select    Last 7 Days
   Search All News
For last month's complete news stories select    Last 30 Days
   Archive News







Sail-World.com  


















Switch Default Region to:

Social Media

Asia

Australia

Canada

Europe

New Zealand

United Kingdom


http://www.sail-world.com/event_images/image/Twitter_logo_small.png   http://www.sail-world.com/event_images/image/RSS-Icon.png

United States

Cruising Northern

Cruising Southern

MarineBusiness World

PowerBoat World

FishingBoating World

 

Contact

Commercial

News

Search

Contact Us

Advertisers Information

Submit news/events

Search Stories/Text

Feedback

Advertisers Directory

Newsletter Archive

Photo Gallery

 

Banner Advertising Details

Newsletter Subscribe

Video Gallery

Policies

 

 

 

Privacy Policy

 

 


Cookie Policy

 

 



This site and its contents are © Copyright TetraMedia and/or the original author, photographer etc. All Rights Reserved.  Photographs are copyright by law.  If you wish to use or buy a photograph contact the photographer directly.
XLXL VIR PBW
LocalAds   DE  ES  FR  IT