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UPDATE 1-China raises tax rebates on over 600 export lines

Published 06/07/2009, 10:17 PM
Updated 06/07/2009, 10:33 PM

(Adds details)

BEIJING, June 8 (Reuters) - China is increasing rebates of value added taxes to exporters of more than 600 product lines, including some electronics, machinery, steel, toys and furniture, the Ministry of Finance said on Monday.

In a statement on its website, www.mof.gov.cm, the ministry said exporters of corn starch and alcohol would also benefit from the increased refunds, which took effect on June 1.

This is the seventh time that the government has raised VAT rebates since last summer to help exporters hard hit by the slump in global demand.

Exporters of sewing machines will now be refunded the full VAT rate of 17 percent.

Rebates on suitcases, shoes and hats, toys and furniture increase to 15 percent. Refunds on various plastic, chinaware and glassware products go up to 13 percent.

Exporters of selected steel products will receive an increased VAT refund of 9 percent, while the rebate on alcohol rises to 5 percent.

The ministry did not give the old rates. (Reporting by Zhou Xin and Alan Wheatley; Editing by Ken Wills)

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