The Ministry Of Finance Cancels Export Tax Rebates For 406 Kinds Of Commodities, Including Steel And Medicine.

After three years, the Ministry of Finance lowered the export tax rebate again. This adjustment direction is contrary to the export tax rebate raised after the financial crisis.

The Ministry of finance today announced that, with the approval of the State Council, the export tax rebates of some commodities such as steel, pharmaceuticals, chemical products and non-ferrous metal processing products have been abolished since July 15th, with a total of 406 kinds.

Some people in the industry suddenly felt this way. From the press conference, the Ministry of Commerce stressed that the prospects for import and export are still not optimistic, and that the foreign trade policy needs to maintain stability for less than half a month.

The adjustment range is 1/6 for 07 years.

Although the timing of the tax rebate adjustment is urgent, Zhang Yansheng, director of the Foreign Economic Research Institute of the national development and Reform Commission, said no surprise to NetEase financial interpretation of the policy. "Many things of the tax rebate adjustment in 2007 are now in continuous succession. The 406 commodities now are roughly equivalent to the 07 adjusted 1/6 in the past year, which means that the adjustment is a very cautious and limited adjustment."

Data show that in 2007, the export tax rebate policy adjustment involved a total of 2831 commodities, accounting for about 37% of the total number of goods in the customs tariff.

He believes that the abolition of some products tax rebate policy, in fact, is the crisis external shocks to paragraph, the country's continuation of the pre crisis economic pformation and scientific development adjustment, and this adjustment is more obvious, after the adjustment of the crisis is much smaller than before the crisis.

Since November 2009, import and export has been resumed for 7 months.

On the basis of the same period of decline in the same period last May, a substantial recovery growth was achieved in May this year.

Compared with the 1-5 months before the financial crisis, imports and exports, exports and imports increased by 8.5%, 4% and 13.6% respectively in 2008.

Zhang Yansheng believes that the direction of this adjustment is in accordance with the direction of low carbon energy saving, two high and one capital and elimination of backward production capacity. At the same time, this is also a measure to reduce international friction. Under the background of the trade friction of iron ore price rise, it is a responsibility of China's steel and iron industry to adjust the overcapacity of steel and iron. It is urgent to reduce production capacity and adjust backward production capacity as soon as possible.

Zhang Yansheng stressed that enterprises should realize pformation and upgrading, innovate products and eliminate backward production capacity while improving such products, and increase the added value of products.

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Low value-added enterprises face industrial adjustment

After the abolition of the tax rebate, it will definitely cause some exports to decrease in a short time. Especially, some industries with "two high and one low" and overcapacity will have a greater impact in the short term and face structural adjustment.

Ding Zhijie, Dean of the school of finance, University of International Business and Economics, told NetEase finance at the first time.

According to customs statistics, imports and exports amounted to US $1 trillion and 100 billion 90 million in 1-5 months, an increase of 44% over the same period last year, of which 567 billion 740 million US dollars were exported, an increase of 33.2%; imports of US $532 billion 350 million, an increase of 57.5%; a trade surplus of US $35 billion 390 million, a decrease of 59.9%.

Ding Zhijie believes that during the financial crisis in 2008, exports were seriously affected, resulting in the export tax rebate policy in 2008 dropped from a downward adjustment to an upward trend. Through the adjustment of this year, the export trade resumed growth in the first half of May this year, and has a good growth momentum for the future. This tax rebate will promote the adjustment of industrial structure, including the high energy consuming industries such as iron and steel and medicine, combined with the adjustment of industrial structure.

However, the adjustment of the tax rebate is less than one month from July 15th, which is not optimistic for the enterprises, and the foreign trade situation is only recovering. The spokesman of the Ministry of Commerce, Yao Jian, also said in a press conference on June that from the feedback information of several important import and export chambers of Commerce and enterprises, because the order needed a cycle, the export in May could not reflect the current import and export situation.

Ding Zhijie believes that the industrial adjustment brought about by the cancellation of some tax rebates will make a great change in China's foreign trade. In the past, more and more external demand for import and export will be brought into play, and the economic benefits will be improved through the expansion of the trade scale in the future.

On the 406 commodity list of the tax rebate, primary products account for a relatively high proportion. This shows that the country is determined to eliminate the low value-added products and backward production capacity.

The export tax rebate is mainly to balance the tax burden of domestic products by returning the domestic tax paid to export goods, so that domestic products can enter the international market without tax costs, and compete with foreign products under the same conditions, thereby enhancing their competitiveness and expanding export earnings.

The last time China adjusted the export tax rebate rate was in June 2009. At that time, in response to the severe challenges brought by the financial crisis to exports, China carried out the export rebate rate of up to 17% to some commodities. The corresponding products involved more than 2600 products of 10 tax numbers, including superior products, labor-intensive products, high technology products and deep processed products.