China's Ministry of Finance (MOF) has announced a 30 percent rebate on value-added tax (VAT) of 17 percent for ferrous scrap to be effective as of July 1, in a move which forms one of China's new incentive measures for the resource recycling industry.
In 2009, China had imposed 17 percent VAT on ferrous scrap, though allowing a 70 percent rebate on the VAT rate. The rebate was lowered to 50 percent in 2010 and was cancelled in 2011.
The China Association of Metal Scrap Utilization (CAMU) has in recent years been lobbying the Chinese government for a restoration of the rebate, targeting a rebate rate of 50-70 percent.