China’s Ministry of Finance said it will increase export tax rebates for almost 1,500 items, including agricultural and processed goods, to relieve pressure on domestic businesses and encourage foreign trade.
In a brief statement March 17, the government said rebates will be increased to 13 percent for 1,084 products, including "porcelain sanitary appliances,” and to 9 percent for another 380 products, including plant growth regulators. The MOF didn’t provide details on the current rates for the products covered by the decree, which goes into effect March 20.
Argus Media, which covers commodities markets, reported March 18 that the higher rebates will apply to petrochemical products such as ethylene, propylene, styrene monomer, ethylbenzene, and ethylene glycol, for which export tax rebates will be raised to 13 percent from 10 percent. The publication said that while China is a net importer of the petrochemical products, it started a five-year program in 2019 to expand the country’s refining and petrochemicals sector.
Reuters reported March 17 that the increased export tax rebates are intended to help companies hit hard by the COVID-19 outbreak. In February the government implemented measures to mitigate the impact of the disease.
The pandemic is the latest in a string of negative developments confronting the country. China has announced a series of tax measures in recent years to stimulate the economy as the government has dealt with a burgeoning corporate debt problem and flagging global demand for its exports, while at the same time trying to soften the impact of tariffs imposed by U.S. President Trump.