The specific tax policies concerning reserve commodities of some countries such as cotton are clear

According to news from the Ministry of Finance, in order to support the development of the national commodity reserve business, with the approval of the State Council, the Ministry of Finance will clarify the relevant tax policies of the central and local commodity reserve policy business (hereinafter referred to as commodity reserve business). The details are as follows:

1. Stamp duty is waived on the capital account book of the Commodity Reserve Management Corporation and its direct depository; the purchase and sales contract documented in the course of undertaking the commodity reserve business is exempted from stamp duty, and the stamp duty payable by other parties to the contract shall be levied on it.

2. The real estate and land for which the commodity reserve management company is responsible for the commodity reserve management company and its direct depository shall be exempted from real estate tax and urban land use tax.

3. The term "commodity reserve management company" and its direct affiliated warehouse referred to in this Circular refer to acceptance by the relevant departments of the central, provincial, municipal and county levels of government to undertake grain (including soybeans), edible oil, cotton, sugar, meat and salt ( Limited to the central reserve) 6 kinds of commodity reserve tasks, to obtain financial reserve funds or subsidized commodity reserve companies.

China Hualiang Logistics Group Co., Ltd., its subsidiaries and COFCO Group Co., Ltd.'s reserve warehouses are entrusted by the China National Grain Reserves Management Corporation, branch companies and their directly-owned warehouses to undertake grain grain (including soybean) and edible oil commodity reserve businesses. Article 1 and Article 2 of the Circular provide tax benefits.