China will reduce tax rebates on exports of resource-intensive and environmentally-harmful products, Caijing magazine reported. An as-yet unreleased policy is scheduled to take effect in September or October, despite strong protests from domestic companies and traders, reflecting the government's drive to shift the nation away from low-value-added exports. Tax rebates for exports were introduced in 1985 to make Chinese products more competitive on the international market. It is now expected rebates will be cut by an average of 2% for products such as textiles, iron and steel, while high-tech industries will have their rebates increased.
Categories