Will tax rebate decline to 5%?

Although a source close to Chinese Central Committee said that the export tax rebate would be decreased to 5 percent for all finished steel products, some other sources today said that the tax rebate would be decreased to 5 percent for long products and to 8 percent for plate products. Rebars, round bars and wire rods are listed among main long products, while medium plate, strip, cold-rolled plate, and hot-rolled plate are listed among plate products. Current tax rebate is 11 percent for all finished steel products and the rate was 13 percent before being modified last year. Therefore the imposition of two different tax rebate rates would be a first for Chinese steel export policy. Nevertheless, as another “first” for China, the country is planning to decrease the tax rebate not only for finished steel products but for other export items such as textile products as well, marking the first comprehensive amendment on Chinese export policy. The policy is expected to be effective from July 1 and be announced in the last ten days of June. Until then, we cannot be sure about whether the export rebate for plates will be reduced to 5 percent or 8 percent.