To Attract Foreign Freighters Into The Port, Japan Reduced The Ship Tonnage Tax By Half

- Dec 10, 2019-

According to Kyodo news agency, the Japanese government and the ruling party decided on a policy Friday to reduce the tax burden of shipping companies by half according to the "ton tax" levied on the regular container ships connecting the major ports in the capital circle, central China and Kansai region and Europe and the United States according to the size of the ships entering the port. The move is intended to strengthen the attraction of foreign trade ships and compete with the ports of China and South Korea, which have an enhanced sense of existence. This is the first change in tax rates in about half a century.

The policy will be included in the revised outline of the 2020 tax ruling party system formulated in the middle of this month.

The tax reduction targets are container ships connecting Beijing Binhai port (Tokyo port, Kawasaki port, Yokohama port), Banshen port (Osaka port, Kobe port), Nagoya Port, four day city port, Europe and North America. As for the "one-time payment" tax rate of one-year ton tax, the "ton tax" as the national tax was reduced from 48 yen (about 3.1 yuan) per ton to 24 yen, and the "special ton tax" as the local financial source was reduced from 60 yen to 30 yen.

As the purpose is to reduce the burden of regular container ships that enter the port many times in a year, the "every time pay" tax rate levied on ships with few times of entering the port is 16 yen per ton of ton tax and 20 yen per ton of special ton tax, which will maintain the current level.

The ton tax is levied on the basis of the "net tons" representing the volume of the warehouse.