Export Tax Rebates Reformed

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China has announced (as was suggested last week) that it is cutting export tax rebates (again) from July 1st in the interests of more balanced international trade. The People’sDaily notes:

    “China’s Ministry of Finance said Tuesday that, starting July 1, the country would cut or eliminate export tax rebates for 2,831 commodities representing 37 percent of the total number of items listed on customs tax regulations…The country will abolish export tax rebates on 553 “highly polluting products that consume heavy amounts of energy and resources” such as salt, cement, and liquefied petroleum gas, said the spokesman.

    Tax rebate on exports of 2,268 commodities which “tend to cause trade frictions” will be reduced, he said. The country will scrap the export tax for ten commodities including shelled peanuts, canvas, wood for carving and stamps, according to the spokesman. The new tax rebate system will have five levels, namely 17 percent, 13 percent, 11 percent, 9 percent and 5 percent.”

It is likely to be a busy week for the accountants!

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2 Responses to “Export Tax Rebates Reformed”

  1. Finance information » Blog Archive » Surging (Trade), Strengthening (RMB), Cooling (Stocks) Says:

    […] and Reuters), partly due to a surge in exports before cuts to export tax rebates came in on 1 July http://www.chinabusinessservices.com/blog/?p=512. “The overall surplus for the first six months came to $112.5bn, the Customs Administration said o […]

  2. Archive » Surging (Trade), Strengthening (RMB), Cooling (Stocks)| China Business Blog Says:

    […] billion in June (according to the FT and Reuters), partly due to a surge in exports before cuts to export tax rebates came in on 1 July. “The overall surplus for the first six months c […]

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