China’s State Council has issued eight measures to reduce costs and improve efficiency in the logistics sector.

Highway tolls, which account for one-third of China’s logistics costs according to Shanghai Daily, are expected to be reduced under the new proposal. Currently, many truckers are forced to overload their vehicles in order to make a profit because of the high cost of petrol and toll fees. In addition, an electronic toll system will be extended to allow trucks to pass through toll areas without stopping.

The State Council has also pledged to unify business tax rates levied on logistics companies operating in different parts of the supply chain. Currently, for example, there is a 3 per cent tax on transport and a 5 per cent tax on warehousing and freight forwarding.

Consolidation in the industry is another goal of the plan, which urges large logistics firms to integrate their resources and smaller companies to boost their market presence through mergers.

The measures also call for improvements to the land use tax policy on warehousing facilities for bulk commodities.