"Two High One Capital" Product Tax Rebate Or Drop Again

It was learned that the Ministry of finance, the NDRC, the Ministry of Commerce and other departments are studying further strengthening the resource products.

According to sources, the type of export tax rebate rate under study is still dominated by high energy consumption, high pollution and resource based "two high and one capital" products, especially focusing on "one capital", and will probably involve new products that have not been adjusted in the past year.

"It may involve rubber, non-ferrous metals, steel products, building materials, etc. the specific commodities need to be finally decided.

At the same time, the above said, "at present, the research of ministries and commissions has basically taken shape. When to form formal documents is still more complicated. We need to take into account the export performance of China at the beginning of this year, and so on, and balance the opinions of many ministries and commissions."

Further abolition or reduction of other "two high one capital" products export tax rebate is already the general trend.

The source told the economic information daily that the relevant departments of the state have initially formed a strategic report on the export tax rate of resource products.

In this report, rare metals such as rare earth metals, ferrous metals such as rare earth metals, steel, oil and coal, non-ferrous metals such as nickel, molybdenum and tungsten, raw materials such as solar energy and polycrystalline silicon, and the overall strategy in the fields of water resources and forest resources have been basically formed.

In the future, we will choose the right time to implement step by step according to the principle of controllability and gradual development.

The intention of the state to restrict the export of products of "two high and one capital" is becoming clearer.

In June 22, 2010, the Ministry of Finance and the State Administration of Taxation issued the notice on canceling the export tax rebates for some commodities (fiscal and taxation [2010]57), and decided to cancel the 406 tax rebate rates of some steel and non-ferrous metal processing materials from July 15, 2010.

It is understood that in order to alleviate the trade surplus and adjust the industrial structure, China has abolished the export tax rebates of 553 products with high energy consumption, high pollution and resources since July 1, 2007, reducing the export tax rebate rate of 2268 commodities that are likely to cause trade friction.

However, with the outbreak and spread of the international financial crisis, China began to adjust its export policy in the second half of 2008, raising the export tax rebate rate for 7 consecutive times, reducing the export premium rate, adjusting the prohibited catalogue of processing trade, and maintaining the basic stability of the RMB exchange rate.

Analysts say China's cancellation of export tax rebates for some high energy consumption and high polluting products will be long-term. It reflects the urgent need for energy conservation and emission reduction and structural adjustment.

Ma Zhong, director of the school of Environmental Sciences of Renmin University of China, said that in view of the situation of energy saving and emission reduction in the whole "11th Five-Year" period, the pressure on the total energy consumption to rise too fast has already appeared. Further energy conservation and emission reduction must rely on industrial restructuring.

By abolishing the export tax rebate, we can raise the cost pressure of "two high and one capital" product manufacturing enterprises, promote the pformation of enterprises and technological progress, thus leading to the adjustment of the whole industrial structure.