China considers canceling tax rebate on billet exports
Sources close to SteelOrbis inform that
China might cancel the export tax rebate for billets. A recent debate in
China's Committee of Development and Reform brought discussion of the export tax to the forefront.
Termination of VAT rebate for
billet exports is expected to reduce prices and remove bottlenecks of transportation in
China. The tax rate is 13%.
If agreed upon, the cancellation would most likely come into effect in May 2005; however, some sources speculate that it could take effect immediately.
In case the export tax rebate for billets is terminated, the significant increase in Chinese exports will to a certain stage be limited, thus changing the supply/demand situation in the international market.