MoF intends to curb tax rebates for selected metals exports
Shanghai. April 12. INTERFAX-CHINA - China's Ministry of Finance (MoF) intends to reduce tax rebates for aluminum profile exports and to stop rebates for certain stainless steel product exports altogether, several state-owned media outlets reported April 12.
The policy still needs approval from the Ministry of Commerce (MOFCOM) and the Ministry of Industry and Information Technology (MIIT).
The MoF wants to cut the tax rebate for aluminum profile exports from 13 percent to 9 percent in an effort to promote industry consolidation, said an Economic Information Daily report.
China Securities Journal, meanwhile, reported the same day that tax rebates for exports of steel products including bar, wire, rod and profile, currently set at 5 percent, may be stopped altogether.
Aluminum profile exports will be largely unaffected by the change since volumes are already quite low, Wang Lixin, nonferrous metals analyst with steel consulting firm Umetal, told Interfax.
However, fellow Umetal analyst Han Jianbiao said the move will have a considerable effect on the steel products industry. "China's exports of stainless steel products have continued to increase since 2008. Scrapping the rebate will jeopardize China's competitive edge," said Han.
Stainless steel bar, profile and wire exports jumped 104.28 percent year-on-year in the first two months of 2011 to 29,321 tons. Exports totaled 150,090 tons in 2010, an increase of 50.28 percent from 2008 and 108.60 percent from 2009, Han said.
-XH