Export Tax Rebate Rate Reduction

2025-06-12 15:53

Recently, the Ministry of Finance and the State Taxation Administration of China issued an announcement stating that starting from December 1, 2024, export tax rebates will be canceled for aluminum products, copper products, and chemically modified animal, plant, or microbial oils and fats. Additionally, the export tax rebate rates for certain goods (e.g., refined oil, photovoltaic products, batteries) will be reduced from 13% to 9%. The affected products are listed below:​​

1. Aluminum products, copper products, and chemically modified animal/plant/microbial oils and fats (full list in Attachment 1 of the announcement)

2. Refined oil, photovoltaic products, batteries, and non-metallic mineral products (full list in Attachment 2 of the announcement)

Export tax rebate adjustments are a critical tool for China’s macroeconomic regulation. Lowering rebate rates reduces export subsidies, directly increasing export costs and squeezing profit margins. This can curb overcapacity in specific industries. However, in the long term, this policy aims to:

· Accelerate elimination of outdated production capacity, pushing enterprises to optimize industrial structures and upgrade technologies

· Enhance global competitiveness by encouraging innovation and quality improvements.

· Redirect resources toward domestic markets, stimulating domestic demand and fostering high-quality development

This adjustment aligns with broader efforts to balance international trade dynamics and promote sustainable growth. For detailed product lists, refer to the official announcements from December 6 and December 2, 2024