More Export Tax Rebates Announced

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Jun. 9 – China’s Ministry of Finance has announced higher tax incentives covering more than 600 export items beginning this month.

Sewing machines and air conditioners are qualified for the full tax rebate of 17 percent, and items like juice, furniture and toys will be raised to 15 percent.

The export tax rebate scheme aims to help business cope with the floundering market and will allow companies to be paid back part or all of the money in value-added tax for items that have gone into the production of export goods.

China’s exports dropped by 22.6 percent to US$91.9 billion dollars in April, the sixth straight month in decline. The market is struggling to cope with depressed demand from U.S. and European markets due to the global economic crisis.

Prior to the newest tax rebates, China’s average export tax rebate was 12.4 percent, an increase of 9.8 percent after six changes last year.