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Trade: Export tax rebate net widened

By Wang Xu (China Daily)
Updated: 2008-12-30 07:55

Special Coverage: Coping with Financial Crisis Related readings:  China to raise tax rebate for machinery products  Tax rebate hikes headed on machinery products  3,770 export items for tax rebate rise announced  Exports up on rebate talk

China has increased the tax rebates for exports of 533 hi-tech and machinery products from January 1, 2009, as part of its efforts to help exporters struggling amid the global economic meltdown.

Exporters of industrial robots and airplane navigation systems would now get tax rebates of 17 percent compared with 14 and 13 percent respectively earlier, the Ministry of Finance said in a statement posted on its website.

Tax rebates for exports of motorcycles and sewing machines have been raised to 14 percent from 11 and 13 percent respectively.

The rebate adjustment is part of the government's proactive fiscal policy and would help alleviate the plight of the enterprises, the ministry said.

Figures from the China General Administration of Customs show exports of machinery products reached 761.3 billion yuan, up 20 percent from the same period a year ago.

Chinese exporters have been severely impacted by the financial crisis, as overseas demand has shrunk and the appreciation of the yuan has made their products more costly abroad.

The nation's exports fell 2.2 percent from a year ago in November, the first time in seven years.

Analysts have cautioned that the country's exports may see a negative growth in 2009, as the major foreign buyers - the US and Europe - are now in the grip of a deeper-than-expected recession.