Tax rebate cut to slow steel sector

SHANGHAI: China's iron and steel industry is expected to grow at a relatively slower pace this year as it will take some time for it to absorb the pressure of the price rise caused by the government's latest move to cut tax rebates on exports of some steel products.

The government will reduce tax rebates on exports of select high-end steel products such as stainless plate and cold-rolled steel sheet and completely remove the tax rebate on hot-rolled steel sheet and section steel from April 15, announced the Ministry of Finance on Tuesday.

"The tax rebate cut, which has been debated for a long time, won't have a substantial impact on the market. Many steel producers increased their exports substantially even before the tax rebate policy was introduced," said Qi Xiangdong, deputy secretary-general of the China Iron and Steel Association at the 2007 China Steel Import and Export Seminar yesterday.