Why did the tax burden of some logistics companies increase after the business tax was replaced by value-added tax? Why are the applicable tax rates different for transportation companies and logistic

Why did the tax burden of some logistics companies increase after the business tax was replaced by value-added tax? Why are the applicable tax rates different for transportation companies and logistics supporting companies such as the warehousing industry?

This is determined by the leaders of the tax bureau themselves, without any real basis. If there is any basis for it, I guess it is like this. In the past, the transportation industry could have an input deduction of 7%. Adding the 3% of the business tax rate you mentioned, it is 10%. This was the tax rate set before. It was piloted in Shanghai this year, and they believed that the economy needed to develop, so they increased it by one percentage point from before, to 11. You see, the warehousing industry is originally 5, but it does not use the 7 deduction like the transportation industry, so it is still 5, and then adds the 1 I just mentioned, so it is 6. This is just a wild guess on my part, and I should take it as a joke.