China may rescind tax rebate for plastic exports

16 April 2008 20:48  [Source: ICIS news]

SHANGHAI (ICIS news)-–The Chinese government is considering rescinding the 5% tax rebates currently available for plastic-product exports, a source at the China Plastics Processing Industry Association (CPPIA) said on Wednesday.

The move would be part of the government's measures to rationalise the industry and to reduce the nation's huge trade surplus.

“The tax rebate is a form of subsidy for the local processing industry, and the government plans to stop these payouts,” the CPPIA source said in Mandarin on the sidelines of the one-day China-US Trade Summit in Shanghai, which closed on Wednesday.

The China plastics industry is lobbying for the export tax rebates to remain at the current 5% for plastic products, he said. The industry will be holding a series of dialogues with the relevant authorities to present its case, he said.

In July, China reduced export tax rebates for more than 2,000 products in its move to discourage local production of energy-intensive and environmentally unfriendly products and to curb its surging trade surplus. The rebates for plastic products were cut to 5% from 9-11%.

By: Chow Bee Lin
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