China announces tax rebate reduction

SteelOrbis has learned that the Chinese government has officially announced a 3 percentage points reduction in VAT rebate for finished steel exports effective from September 15. The VAT rebate for finished steel products will decrease to 8 percent from the current 11 percent. Meanwhile, export rebate for coal will be abolished. The government has also reduced the tax rebate for textile and plastic (by 2 percentage points to 11%), while it has increased the rebate for IT products (by 4 percentage points to 17 percent). The decrease in VAT rebate may lead to a slight decrease in China's steel exports, and to an increase in export quotations.