Posted on 23 Oct 2008
The government is planning tax rebates on high value-added steel to cushion the impact of falling exports, the China Securities Journal said, citing Qi Xiangdong, a top official in the China Iron and Steel Association.
Qi said there was concern about the steel sector as 23 out of the nation's 71 large and medium-sized companies reported losses in September.
The rebates mean exporters get a portion of the money back that they have paid in value-added taxes while producing the goods.
Most steel exports currently benefit from no export tax rebate at all, analysts said.
The news came two days after China announced it would raise rebates on more than a quarter of taxable goods, including textiles and toys, from Nov. 1, to shore up the export sector as the global crisis starts taking its toll.
China exported 48.5 million tons of steel products in the first nine months of the year, down 2.1% from the same period in 2007, according to recent customs figures.
Growth rates in the country's overall exports were down in eight of the first nine months of this year, placing substantial pressure on Chinese exporters and stoking government fears of job losses.
