The following was reported on in the March 29th edition of “The Journal of Commerce”.
Beginning April 1, the Chinese government will increase tax rebate rates on selected exports.
The change should make China’s massive economic stimulus plan more effective for Chinese manufacturers in various industrial sectors, including textiles, iron and steel, nonferrous metal, petrochemical, electronic information and light industrial products.
Since last August, the export tax rebate rate for textiles has changed four times; the latest increase in February 2009 raised the rate from 14 to 15 percent. China’s exports have been severely hurt by the global economic downturn. In February, exports dropped by 25.7 percent year-on-year.
Guo Yongxin, an analyst with China National Light Industry Information Center, told the press that the government’s goal is to bring the export tax rebate on 631 light industry products back up to 13 percent, the same average level as in 2007. The adjustment will be adopted in several steps.
