One of the most influential figures in China’s aquaculture sector is pushing for a tax cut to help the sector to consolidate and grow.
China’s seafood sector is at a disadvantage because, unlike meat firms, live seafood is taxed at 10 percent VAT, said Liu Han Yuan, the chairman of the Tongwei Group, which is a major player in China’s animal feed sector and which also farms and processes tilapia.
Uniquely, much of China’s seafood is sold live at retail in supermarkets and markets, Liu explained to fellow Communist Party members at the recent National People’s Congress in Beijing. Many of the country’s large pork and poultry firms don’t face the tax, as they slaughter their own animals and birds. Liu also called for reform to the tax system to allow aquaculture firms to claim receipted expenses incurred outside their province against business expenses.
The Tongwei boss is hoping his remarks find traction at the meeting, given China’s central government has pledged to cut business taxes and red tape this year to boost the economy.
A company statement detailing Liu’s remarks noted the Chinese aquaculture sector remains highly fragmented, reducing the capacity for innovation and making the sector less attractive to investors. The sector’s top 10 firms control just five percent of the market, whereas the figure in the pork and poultry sector is 10 percent, according to Liu.
Tongwei has also been heavily active in the solar energy market and has sought to fuse aquaculture and solar, installing panels near or over ponds.
