On Tuesday, the Ministry of Finance of the People’s Republic of China announced that starting from March 20, China will increase export tax rebates for nearly 1,500 products. The Chinese government hopes this will ease the pressure on companies heavily affected by the coronavirus outbreak.
Export Tax Incentives
For 1,084 products, including porcelain sanitary ware, the export tax rebate rate will increase to 13%, while for another 380 items, it will rise to 9%. The previous preferential rates were not specified.
In China—the world’s largest exporter according to the World Trade Organization—companies can apply for refunds or credits on value-added tax (VAT) and consumption tax for goods intended for foreign markets.
Tax incentives will help mitigate the impact of the virus outbreak on declining trade. The spread of the coronavirus led to the sharpest drop in industrial production in China in 30 years during the first two months of 2020, as factories remained shut long after the extended Lunar New Year holidays.
The list of products currently entitled to the 13% export tax rebate includes ethylene, propylene and ethylene glycol chemicals, as well as stainless steel wire.
Source: www.reuters.com
Export Tax Incentives
For 1,084 products, including porcelain sanitary ware, the export tax rebate rate will increase to 13%, while for another 380 items, it will rise to 9%. The previous preferential rates were not specified.
In China—the world’s largest exporter according to the World Trade Organization—companies can apply for refunds or credits on value-added tax (VAT) and consumption tax for goods intended for foreign markets.
Tax incentives will help mitigate the impact of the virus outbreak on declining trade. The spread of the coronavirus led to the sharpest drop in industrial production in China in 30 years during the first two months of 2020, as factories remained shut long after the extended Lunar New Year holidays.
The list of products currently entitled to the 13% export tax rebate includes ethylene, propylene and ethylene glycol chemicals, as well as stainless steel wire.
Source: www.reuters.com