BIZCHINA / Milestones
Development of tax rebates policies
(chinadaily.com.cn)
Updated: 2007-06-22 12:30
l In March 1985, the State Council issued a notice stipulating
that China would implement the export tax rebates policy starting from
April 1, 1985.
l China reformed its tax rebates management method based on
product tax, value-added tax and consumption tax in January 1994. A new
export tax rebates or tax exemption system based on new value-added tax
and consumption tax scheme was established.
l In 1996, the Chinese government slashed tax rebates: product
tax to 3 percent from 11 percent; value-added tax to 6 percent from 13
percent; and consumption tax to 9 percent from 17 percent.
l Tax rebates were gradually enhanced in 1998 due to the Asian fi
nancial crisis. General tax rebates rate for export goods were raised to
15 percent from 6 percent previously.
l In 2002, China implemented an export tax rebates management
method of tax exemption, tax reduction and tax reimbursement for
production enterprises exporting their self-made goods.
l The government adjusted tax rebates to 12.51 percent from 15.5
percent in 2003 due to economic overheating.
l The Ministry of Fi nance and the State Administration of
Taxation issued a notice in 2003 on the adjustment of tax rebates rates
for exported goods.
l The country eliminated tax rebates for many leather items used
as raw materials starting from January 1, 2006 and cut tax rebates for
other products.
l Starting from September 15, 2006, China reduced tax rebates for
steel, some non-ferrous metals, textiles and furniture. China also raised
the export rebate rate for major technical equipment, some IT, biological
and medical products and high-tech products as well as processed farm
produce.
l The Ministry of Fi nance and the State Administration of
Taxation scrapped export rebates on 83 steel products while lowering the
rate on 76 others on April 15, 2007. The rebate rate for 76 products
including specialty steel, stainless steel products, and cold-rolled
steel was reduced to 5 percent. The other 83 products include steel wire
and steel sheet products.
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