Chinese Premier Wen Jiabao chaired a State Council on the 12th executive meeting. The meeting decided to support labor-intensive small and medium enterprises, to support industrial upgrading, increased twice in the second half on the basis of the export tax rebate rate, since December 1, 2008, to further improve the part of the labor-intensive products, mechanical and electrical products and other influenced by the export tax rebate rate. To implement the decision of the State Council, Ministry of Finance, State Administration of Taxation recently issued the “Ministry of Finance State Administration of Taxation on the improvement of labor-intensive commodities such as VAT export tax rebate rate of notification” (Cai Shui [2008] 144).

Notice a clear increase of the 3770 tax rebates for a specific range of goods, mainly as follows: The rubber tires and other parts of the main or all of the artificial fast-growing wood as raw material part of the forest products tax from 5% to 9%; will Metal extrusion die with the mold parts, glass of tax from 5% to 11%; will freeze on shrimp, crabs and some other aquatic rebate from 5% to 13%; to bags, shoes, hat, umbrella, furniture, bedding, lamps, clocks and other goods tax rate from 11% to 13%; to toothpaste and some other chemical products, stone, aluminum and other non-ferrous metal processing materials with commodities such as tax rate from 5% , 9% to 11%, 13%; to agricultural pumps, motorcycles, bicycles, household appliances, mechanical and electrical products and some other tax rate from 9% to 11%, 11% to 13%, 13% to 14 %.

 

Attachment:

On the improvement of labor-intensive products such as commodity export tax rebate rate of VAT Notice

Tax [2008] 144

 

Provinces, autonomous regions, municipalities, separately listed cities (bureaus), state tax, the Finance Bureau of Xinjiang Production and Construction Corps:

  State Council’s approval, decided to raise some of the goods VAT export tax rebate rate (hereinafter referred to as tax rebates). Notice on the matter are as follows:

    First, enhance the scope of tax rebate rate of goods

(A) some of the rubber products, forest products tax from 5% to 9%.

(B) part of the mold, the glass of the tax from 5% to 11%.

(C) some of the fish’s rebates from 5% to 13%.

(D) to bags, shoes, hats, umbrellas, furniture, bedding, lamps, clocks and other goods tax rebate from 11% to 13%.

(E) some of the chemical products, stone, wood and other non-ferrous metal processing products rebate rate from 5%, 9% to 11%, 13%.

(Vi) some of the tax rebate rate of machinery and electronic products from 9% to 11%, 11% to 13%, 13% to 14%.

The tax rate improve the specific product name, tariff and tax rates in the annex.

  Second, the execution time

The notice required the adjustment of tax rates since December 1, 2008 from the Executive. Specific execution time, the “declaration of export goods (export tax rebates only)” Customs export date indicated.

Hereby notified.