Tax rebates go up on some exports
March 26, 2009
CHINA will increase the tax rebate rates on some textile, iron and steel, nonferrous metal, petrochemical, electronics and light industrial exports starting on Wednesday.
The decision was made yesterday at an executive meeting of the State Council. The Cabinet agreed that it was necessary to raise tax rebates on some export products to fully implement the country’s economic stimulus package and the support plans for 10 industries.
The exact amounts of the rebate were not revealed by the State Council.
China has raised the export tax rebate rate for textiles four times since last August. It was increased previously in February from 14 percent to 15 percent.
China’s exports plummeted 25.7 percent year-on-year in February, the worst decline in more than a decade, as global demand deteriorated amid the deepening recession.
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Indicators point to signs of recovery
January 24, 2009
SEVERAL economic indicators for December have shown signs of recovery, though China’s fourth-quarter growth slowed, said the head of the National Bureau of Statistics.
“Last December, the economy was hit quite hard by the global financial crisis, but the December figures also began to show some positive changes and these changes are very important for us,” Ma Jiantang said.
The rebound in money supply, which rose 17.8 percent, the quickest in seven months, and loan growth in December means that the moderate monetary policy has been effective, Ma said.
Retail sales jumped 17.4 percent last month in annualized terms, up from 16.6 percent in November, with a rebound in goods like cars, garments and cosmetics. Ma also pointed out that there was a pick-up in investment sentiment citing an ING report which said investor confidence in China rose to 103 in the fourth quarter from 88 in the third.
“Almost all major monthly indicators point to a recovery,” driven by rising domestic demand – a result of aggressive fiscal and monetary stimulus – and stable exports, Merrill Lynch’s economist Ting Lu said.
Crude steel production, a major indicator of industrial activities, rose to 37.79 million tons in December from 35.19 million tons in November, after China in November announced the 4-trillion-yuan (US$585 million) fiscal stimulus package to support growth.
China has raised export tax rebates by several steps to help revive exports. In December, the government increased export tax refunds on 3,770 tariff lines including mechanical and electrical products, or 27.9 percent of all exports. Exports shrank 2.2 percent in November, the first drop in seven years.
Goods that are eligible for export tax refunds saw positive export growth of 4.8 percent in December, against an overall negative growth of 2.8 percent, Ma said. “This means our export policies have started to show results,” he said.
Ma said the government would wait and see whether these positive changes are sustainable or just temporary. “But such positive changes are just like sunshine in cold winter and light at the break of a dawn, and also little sparks that can ignite a flame,” he said, adding he has confidence in China’s economy.
China’s gross domestic product growth slowed to 6.8 percent in the fourth quarter from 9.0 percent in the third as the global financial crisis deepened into domestic economy.
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Export tax rebates increased for machinery products
December 29, 2008
 Just today we have underlined totally 3-phase the tax rebate hikes put into effect phase by phase. Very same day, the forth phase of tax rebate increases has been published.
The new 4th phase adjustments covering machinery products. Here is the news: BEIJING, Dec. 29 (Xinhua) — China will increase the export tax rebates for some machinery products as of Jan. 1, 2009, in a bid to alleviate cost burdens on exporters, the country’s taxation watchdogs said Monday. The rebate hikes will involve 553 types of high-tech and high value-added mechanical and electrical products, the Ministry of Finance (MOF) and the State Administration of Taxation announced. Export tax rebate rates for industrial robots and inertial navigation systems for aviation use will be increased to 17 percent, from 13 percent and 14 percent respectively. The rebate rates for exported motorcycles and sewing machines will rise to 14 percent. Their current rebate rates stand at 11 percent and 13 percent respectively. “The move will help ease the sufferings of Chinese exporters and boost the country’s confidence in fighting the financial crisis,” the MOF said in a statement. It was China’s fourth rebate hike on exported products this year, and one of several government’s measures to counter the global economic downturn that has dampened foreign demand. The most recent increase took effect on Dec.1, covering 3,770 items of labor-intensive, mechanical and electrical products, or 27.9 percent of the country’s total exports. The previous two rebates were made in August and November. Official data showed China’s November exports declined year-on-year by 2.2 percent to 115 billion U.S. dollars, the first monthly decline since June 2001. Before that, export growth slowed from 21.5 percent in September to 19.2 percent in October. China levies value-added tax on most products, but refunds varying amounts of that tax on goods that are exported. The government usually adjusts the size of export tax rebates for different types of goods when it is trying to encourage or discourage growth in particular industries. |
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Attention to VAT Rebate Changes!
December 29, 2008
We want to redraw attention to the newly adjusted VAT rabates again. Because a total of 3,770 items, in the third export tax rebate increase this year, is put into affect in December.
The items involved include labor-intensive, mechanical and electrical products.
So those buying from China is better to learn whether there is a change for their products. Buyers can decrease their buying prices if there is are tax rebate increase on their items. Because, an export rebate increase means a decrease in the manufacturer’s total costs.
Rises in tax rebate rates varied among different items. For example, the rate on tires was raised from 5 to 9 percent while glassware was up 5 to 11 percent. Rates on labor-intensive products such as luggage, shoes and umbrellas were elevated from 11 to 13 percent.
The 3,770 items accounted for 27.9 percent of the country’s total exports.
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China raises tax rebates to help exporters
October 23, 2008
CHINA will raise export tax rebates on some industries on November 1, the second hike in three months, to help struggling industries plagued by weaker global demand, the Ministry of Finance said today.
Tax rebates on shipments of textiles and garments will be increased to 14 percent. China last lifted the rebates by 2 percentage points to 13 percent on August 1.
The ministry also said that the rebate on exports of toys will be hiked to 14 percent from 11 percent now and that on furniture shipments will rise up to 13 percent from the current ceiling of 11 percent.
Rebates on exports of selected ceramic, plastics, mechanical, electrical and medicine products will also grow by 1 to 2 percentage points, according to the finance ministry.
The State Council, China’s Cabinet, said over the weekend that it would push forward policies to spur growth through measures including hiking tax rebates for exporters and cutting transaction fees of property transactions.
The moves were aimed at maintaining steady economic expansion and shielding the country from turmoil in the international markets, the government said. China’s economic growth was 9 percent in the third quarter, the slowest in five years.
China’s exports of garments reached US$87.1 billion in the first nine months of this year, up 1.8 percent year on year, according to Customs data. The growth clip was 21.2 percent points lower than a year before.
A rising yuan and increasing production costs also drove a lot of Chinese smaller toy producers out of business. A total of 3,631 toy exporters, or 52.7 percent of the industry’s total, were closed in the first seven months, according to the Customs.
Chinese Minister of Commerce Chen Deming said in September the government would help labor-intensive exporters to overcome difficulties they were facing as global demand faltered. Chen also encouraged them to upgrade their products to meet challenges.
Source: ChinaView
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