Singapore will initiate a Zero GST (goods and services tax) Warehouse Scheme on Jan. 1 next year to replace the current Bonded Warehouse Scheme, Channel NewsAsia report said on Friday.

The new scheme will enable importers with a centralized inventory control system to move their goods between different warehouses without paying GST until their goods enter the local market.

The Singapore government expects the move to help strengthen the city state's status as a regional logistics hub by reducing companies' operational cost and increasing their cash flow.

Importers may apply for any of the three types of licenses issued under the new scheme according to their business needs from the coming Oct. 1.

Source: Xinhua