CHINA / National
Adjusting export rebate policy under way(Xinhua)
Updated: 2007-06-19 18:09
China's Ministry of Finance said Tuesday the country would adjust the export rebate policy on 2,831 commodities, which account for 37 percent of the total items listed on the customs tax regulations starting from July 1.
A ministry spokesman said the move was one of a basket of measures to suppress overheated export growth and ease frictions between China and its trade partners.
The country will abolish export tax rebates on 553 "highly polluting products that consume heavy amounts of energy and resources" such as salt, cement, and liquefied petroleum gas, said the spokesman.
Tax rebate on exports of 2,268 commodities which "tend to cause trade frictions" will be reduced, he said.
The country will scrap the export tax for ten commodities including shelled peanuts, canvas, wood for carving and stamps, according to the spokesman.
The new tax rebate system will have five levels, namely 17 percent, 13 percent, 11 percent, 9 percent and 5 percent.
The spokesman said the cost of producing the 2,831 commodities would increase as a result of the changes to the export tax rebate regime. This would incite capital investment to move to other "high value-added and high tech" industries.
In the long run, this would help the country develop in an economic and sustainable way, he said.
Customs statistics show that from January to May, the country reported a trade surplus of 86 billion US dollars, up 83 percent on the corresponding period of last year.
Soaring exports have increased liquidity in the domestic market and added to pressures on the RMB, said experts.