China to raise export tax rebates next month

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China will increase export tax rebates from November 1 and quicken export tax rebate payments to support foreign trade and cut burdens for enterprises, according to the State Council executive meeting chaired by Premier Li Keqiang on October 8.

It was emphasized at the meeting that the tax rebate conforms to rules of the World Trade Organization (WTO), and further improvement of the tax rebate policies will help reduce costs for the real economy, help cope with the complex international situation and maintain stable foreign trade growth.

According to structural adjustment principles and international practice, China will raise the tax rebate to 16 percent for those exports currently getting a rebate of 13 or 15 percent starting November 1.

The rebate will also be raised to 10 percent for those exports that currently get a nine percent rebate, though the rebate will be raised to 13 percent for some.

In addition, the rebate will be raised to six percent for exports currently getting a five-percent rebate, though for some it will be raised to 10 percent.

For those energy-intensive, heavy-polluting, resource products as well as products confronting overcapacity-cutting tasks, the tax rebate will remain unchanged. And the tax rebate will be reduced to five ranks from the original seven to further simplify the tax system.

The meeting also decided to simplify procedures and shorten the time of the tax rebate for export enterprises with high credit ratings and a good history of paying taxes, and fully implement paperless tax returns to improve the efficiency of the tax rebate review.

By adopting the above measures, the average time for the tax rebate to be processed by the end of this year is expected to be shortened from the current 13 working days to 10.

(With inputs from Reuters)

Source(s): China.org.cn