The Ministry of Finance and the State Administration of Taxation issued a notice yesterday that in order to support the development of local commodity reserves, the State Council approved the tax policy for local commodity reserves.

The fiscal subsidy income earned by local commodity reserve management companies and their immediate libraries under the commodity reserve task of sugar, meat and other commodities shall be exempted from business tax and enterprise income tax; and the stamp duty shall be exempted from the capital account books of the local commodity reserve management companies and their direct storage funds that bear the tasks of local grain, oil, cotton, sugar, meat and other commodity reserve tasks, and the stamp duty shall be exempted from the purchase and sale contracts of the bookstores where they operate the above-mentioned local reserve commodity business, and the stamp duty on the other parties involved in the contract shall be collected according to the stamp duty; the local commodity reserve management companies directly under the local grain, oil, cotton, sugar, meat and other commodity storage tasks, and the houses directly owned by them, shall be allowed to operate the property and land for their own use of the local reserve commodity business, and shall be exempted from property tax and urban land use tax. The notice pointed out that the local grain, oil and cotton should be borne.

According to the briefing, the local commodity reserve management company and its immediate repository referred to by the notice refer to the local commodity reserve enterprises, which are 5 kinds of reserve commodities, such as grain, oil, cotton, sugar and meat, which are approved by the provincial people's government and allocated by the people's Government.

The execution period is from the date of dispatch to December 31, 2008.