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China may cut tax rebates on aluminium profile exports-sources
Edited by : AL CIRCLE
2 min read
HONG KONG May 19 (Reuters) - China may cut tax rebates on exports of aluminium profiles to 9 percent in June or July but leave the rebate unchanged on plate aluminium, the most active semi-finished aluminium product export, industry sources said on Thursday.
Exports of aluminium profiles, used in the construction sector, and plate, used in the manufacture of industrial products, are currently subject to a 13 percent tax rebate.
An aluminium smelter source said he believed Beijing would cut rebates on profiles as it was a low-end product compared with other aluminium semis. Profiles are typically produced by smaller, private fabricators.
Beijing increased rebates on profiles to 13 percent after the global financial crisis reduced demand for the Chinese product in 2009. Rebates in China are designed to encourage exports as Chinese companies pay a 17 percent value-added tax in the domestic market.
Exporters had anticipated cuts on some aluminium products after local media reports in April resurrected a half-year-old discussion that Beijing was considering cutting rebates on the products. The reports did not provide a timeframe.
The expected rebate cuts, coupled with strong international aluminium prices, have prompted exporters to increase deals, boosting semis exports 33 percent in the first quarter from a year earlier.
"We are hearing that the cut on profiles has been finalised," said a manager at a semi-finished aluminium products manufacturing plant in the southern province of Guangdong.
He said the 4 percentage point cut would not have a big impact on the local market given that exports had already fallen this year after some buyers such as the United States and Australia had imposed anti-dumping duties on the Chinese product.
Exports of aluminium profiles, used in the construction sector, and plate, used in the manufacture of industrial products, are currently subject to a 13 percent tax rebate.
An aluminium smelter source said he believed Beijing would cut rebates on profiles as it was a low-end product compared with other aluminium semis. Profiles are typically produced by smaller, private fabricators.
Beijing increased rebates on profiles to 13 percent after the global financial crisis reduced demand for the Chinese product in 2009. Rebates in China are designed to encourage exports as Chinese companies pay a 17 percent value-added tax in the domestic market.
Exporters had anticipated cuts on some aluminium products after local media reports in April resurrected a half-year-old discussion that Beijing was considering cutting rebates on the products. The reports did not provide a timeframe.
The expected rebate cuts, coupled with strong international aluminium prices, have prompted exporters to increase deals, boosting semis exports 33 percent in the first quarter from a year earlier.
"We are hearing that the cut on profiles has been finalised," said a manager at a semi-finished aluminium products manufacturing plant in the southern province of Guangdong.
He said the 4 percentage point cut would not have a big impact on the local market given that exports had already fallen this year after some buyers such as the United States and Australia had imposed anti-dumping duties on the Chinese product.
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