Coke exports reduction to calls on dropping tariffs

Mar.26 MetalBiz--Not only the coking coal enterprises, but also some government officials and economic researchers had begun to call on to reduce coking coal tariffs.

Under the pressure of weak demand abroad and increasing coke export tariffs, Shanxi coking coal exports hit a new low record in February this year since 2005. On March 24, ZhuYuan, a researcher at the Institute of Development and Reform Commission in Shanxi Province, said that under the current economic situation, reduction of the coke export tariffs will improve the competitiveness of enterprises.

On March 10, Wang Shunzhen, director of Shanxi business office suggested at two sessions that the "country should reduce coking coal tariff to 15pc and increase export rebate tax rate, and at the same time, apply for return of coking coal export tariff to support the transition development of Shanxi. "

Zhu Yuan told reporters on the 24th, "Under the current economic situation, keeping growth is the ultimate goal, and first of all, enterprises should ensure they can operate normally. "

Zhu Yuan believed that cutting the tariff will not only enhance the competitiveness of enterprises but also ensure the people's livelihood security.

" Reduction of tax fees will be the most direct help for troubled coking coal enterprises." said a related person in the Shanxi Dashihe Coking Coal Co., Ltd.

However, as high energy-consuming and polluting resource strategic merchandise, coking coal exports had been regulated by the country by means of the cancellation of coke export tax rebate to gradually increase the intensity of the tariff since 2004.

"Business losses were temporary problems; while in the long run, coking coal is a non-renewable resource, which should not be strongly encouraged for export."  Pan Yu, the vice president of Shanxi Academy of Social Sciences as well as director of the Economy Office, said, "but substantial coking enterprises loss were also unreasonable, and taking coking coal enterprises into consideration, appropriate reduction of export tariff for coking coal is necessary, which can compensate to losses of business to a certain extent "