On March 17, 2020, China’s Ministry of Finance announced significant measures related to export trade. The ministry implemented the measures on March 20 to support trading companies involved in the export of applicable goods. On the other hand, Shanghai also released measures concerning imported materials and other important policies to aid businesses impacted by the COVID-19 outbreak.
Read our previous post about Shanghai Government to Aid Businesses Hit by COVID-19
The Chinese government expects the epidemic prevention and control measures to bring immediate relief to foreign trade and businesses. Keep reading for more details.
Export tax rebate increase
The State Administration of Taxation indicated in its notice that the export tax rebate rate for 1,464 products will be increased at different levels.
The table below shows the details of the increased export tax rebates.
According to further announcements, the increase in the export rebates aims to achieve the following outcome:
- Reduce the operating costs of enterprises,
- Improve the global competitiveness of export products and;
- Boost the confidence of export trade enterprises.
Furthermore, the SAT’s notice emphasizes the exclusion of rebates for products that require high energy and resource consumption. Moreover, products with high-pollution consumption are also exempt from the increased tax rebates.