China to Abolish Export Tax Rebates on Coal and minerals.
China will abolish export tax rebates on coal, natural gas, minerals and some primary wood products from 15th, Sep.2006 and increase the export rebate rates on some high-tech products and processed farm produce. According to a circular jointly released Thursday by the Ministry of Finance, the State Development and Reform Commission, the Ministry of Commerce, the General Administration of Customs and the State Administration of Taxation, China will abolish export rebate on silicon, paraffin, pitch, fine goat wool, charcoal, 25 kinds of pesticides and some minerals.
As one of the government's macro-control measures, the adjustment of the export rebate aims to improve China's industrial structure and to promote the balanced development of China's imports and exports, according to the Ministry of Finance.
Until now, China imposed 6% taxes on all mineral and mining products, including natural stone. After exporting these products, the General Customs Office would pay a 6 % rebate to the exporting company. Starting September 15th, 2006, these tax rebates are canceled. Together with the expected appreciation (3 – 5 %) of Chinese RMB, Chinese stone products will have a price raise of approx. ten percent.
However, any purchase contract with your preferred fabricator, closed before September 14th, 2006 and to be exported before December 14th, 2006 will be excluded from above regulation, as long as the sales contract is presented before September 30th, 2006 to the General Customs Office in China.