China is raising rebates on taxes for a whole category of exports to cushion a slowdown in the economy. A joint announcement from the Ministry of Finance and the State Administration of Taxation confirmed that tariff changes will take effect on November the 1st.
For exporters of textiles and toys, tax rebates will go up from 13 to 14 percent. Rebates for certain daily commodities and plastic products currently stand at 5 percent. But will go up to 11 percent for commodities, and 9 percent for plastic products.
The announcement of these measures come just a day after the release of GDP figures for the third quarter with GDP growth in China slowing to 9 percent, largely due to global financial turmoil and weakness in key sectors on the domestic front.
Wang Jun, Vice Minister of Ministry of Finance said "The tax rebate adjustment is part of macro-control measures set up in response to the current situation. The move will help companies rebuild confidence and tackle difficulties."
(CCTV October 22, 2008)
