China raises export tax rebates for more types of goods

Mar. 26, 2009 (China Knowledge) - The State Council decided on Wednesday to increase the tax rebate rates for exports of selected textile, iron and steel, nonferrous metal, petrochemical, electronics and light industrial products, the official Xinhua News Agency reported.

The new rates will take effect on Apr. 1, 2009. The exact rebates rates have not been announced.

The central government believes that this move is necessary to cope with the global financial crisis, boost economic growth, and support the announced stimulus plans for 10 industries.

In February, the country raised tax rebate rate for textiles from 14% to 15%, the fourth time since August of 2008.

China issued RMB 66.7 billion (US$9.77 billion) in export tax rebates in the first two month of this year, 20.8% more than in the same period of 2008, despite the fact that the total trade volume in Jan-Feb contracted 27.2% year on year to US$266.77 billion, according to an earlier report from China Knowledge.