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Gov't to raise export taxes

(Agencies )
Updated: 2007-05-18 08:43

China will raise export taxes by 5 to 10 percent on a range of products, including steel, aiming to slow the country's export boom and ease the country's trade surplus, government sources said yesterday.

Beijing also plans to further reduce tax rebates on some exports, including some basic materials and textiles.

It would remove import taxes on coal and reduce import taxes on other raw materials, according to officials from three government bodies - the National Development and Reform Commission, the Ministry of Commerce, and the State Administration of Taxation.

"The plan has already been established basically," said a source in Beijing, noting that the changes could go into effect as early as June 1.

China's exports of steel products hit a record 7.16 tons in April, as mills and traders raced to beat a change in export policy that took effect on April 15.

China removed export rebates on most types of steel products while reducing the rebate on more value-added products to 5 percent.

A proposal to raise the export taxes on steel billet and other semi-finished products to 20 percent has been discussed since early May, but has not yet been approved by the central government, a source said.

Agencies

(China Daily 05/18/2007 page13)