WASHINGTON Oct 18 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
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
"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)