China will improve its export tax rebate system
During the meeting held on October 8, 2018, the China State Council decided to improve the export tax rebate policy granted to the chinese companies engaged in foreign trade, by cutting the number of export tax rates brackets and raising some rates.
From November 1, 2018, the number of export tax rebate brackets will be cut from seven to five. Moreover, some rates will be raised to a higher percentage. Specifically, the 15% bracket and part of the 13% bracket will be raised to 16% (full refund); the 9% bracket will be adjusted to 10% or 13%, while the 5% bracket will be increased to 6% and 10%.
On the contrary, the export rebate rates for high energy consumption and seriously polluting goods will remain unchanged, along with those involved in the cuts of industrial production capacity.
The procedures for obtaining the tax rebate will be simplified and shortened especially for companies with good credit record and paperless declarations will be fully implemented in order to improve the efficiency of the whole process.
The new measure will help those companies which are export-oriented and that have been affected by the duties levied by US government on imports from China.