October 18, 2016 / 3:12 PM / 10 months ago

U.S. says China ends tax exemption for domestic small aircraft

WASHINGTON, Oct 18 (Reuters) - China has ended a "discriminatory" tax exemption for domestically produced small aircraft that the United States had challenged before the World Trade Organization, the U.S. Trade Representative's Office said on Tuesday.

China's policy had exempted small domestically produced aircraft, general aviation planes, business jets and regional aircraft from a 17 percent value-added tax, but had imposed such taxes on imported small aircraft, including those produced in the United States, U.S. Trade Representative Michael Froman said in a statement.

He added that the Chinese tax exemptions were not published but were uncovered in an investigation undertaken by the Obama administration.

"While we are happy to announce this discrimination has ended, we remain deeply concerned about China's lack of transparency on taxes affecting American products," Froman said. "China should not impose discriminatory taxes or conceal them." (Reporting by David Lawder; editing by Jonathan Oatis)

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