China to raise export tax rebates on April 1
today Mar 25, 2009
By Eadie Chen and Polly Yam
BEIJING/HONG KONG, March 25 (Reuters) - China will raise tax rebates on exports of some textiles, iron and steel, non-ferrous metals, petrochemicals, electronic information and light industrial goods from April 1, state media said on Wednesday March 25, citing an announcement from the State Council, China's cabinet.
The statement did not give any details of planned changes in the rebates, which allow exporters to recoup some or all of the 17 percent value-added tax.
China has increased rebates several times since global demand weakened due to the economic crisis, threatening to cripple many of its export-dependent manufacturers and heavy industry sectors such as metals producers and petrochemicals.
In October, China increased rebates on one quarter of its export lines. In November, it raised refunds on 3,770 export items, or 28 percent of all export goods.
Base metals have been among the worst-hit sectors, with exports of aluminium virtually drying up while imports continue to flood in, attracted by China's efforts to support smelters by stockpiling unwanted reserves of metals.
Industry sources expect Beijing to increase rebates on exports of aluminium products to boost aluminium consumption supporting loss-making smelters.
Rebates of aluminium sheets and plates are expected to rise to 17 percent from 13 percent, said a fabricator source in Guangdong province, the country's export hub. He added rebates on aluminium tubes might increase to 11-13 percent from 8 percent and aluminium profiles could rise to 5 percent or more from zero. (Writing by Tom Miles; editing by Sue Thomas)
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