June 26,
China’s ministry of finance has eliminated the value added tax rebate on certain export steel products. It has withdrawn the 9% and 13% export rebate on HRC steel and cold rolled coils with effect from July 15. Primarily, the rebate has been withdrawn on flat products and long products.
The rationale behind eliminating VAT is to curb excessive production and keep domestic prices low.
China wants to move up the value chain in exports and also wants to check iron ore prices.
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