- CNTV English - CCTV News

Tax rebate scraped on selected exports

07-16-2010 13:53 BJT

China's Ministry of Finance has removed tax rebates on selected exports, in a bid to rein in overcapacity. Analysts say the government is taking measures to upgrade domestic industrial structure.

Tax rebates have been scrapped for over 400 kinds of exported products, including steel, medicine, chemicals and non ferrous raw material products. Most exports subject to the cancellation are high energy consumption commodities - high pollution primary products with low added value.

Professor Zhu Qing, School of Finance, Renmin University said "By canceling the tax rebate on these items, their production costs will be increased. So the production and export of those products will be hindered."

Experts say the move is intended to reduce excess capacity in the sector, by discouraging low added value products.

Zhu Qing said "The result of the over capacity will eventually become evident, if domestic demand remains unchanged. The overcapacity could limit or even shut down some enterprises."

China's foreign trade perked up in May, but the country has also been hit with an increasing number of anti-dumping and anti-subsidy cases. Experts believe the tax rebate removal will look to benefit China's international trade.

Zhu Qing said "Raising China's export costs and prices could also iron out tensions between China and its trade partners."

China reformed the tax rebate rate in June 2009 to fight against the sweeping financial crisis. Rebates up to 17 percent were granted on more than 2,600 kinds of products.

Editor:Xiong Qu |Source:

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program