Thursday, December 30, 2004
China is increasing its tax rebate on exports of electronics from 13 percent to 17 percent as part of a push to make its products even more competitive overseas.
The product areas affected include ICs, discrete components, LCD and CRT monitors as well as hard disk drives, mobile phones and mobile phone base stations as well as a range of other IT products. The decision was announced earlier this week by China's State Administration of Taxation and is retroactive to November 1.
The rebate scheme was originally put in place in the late 1990s during the Asian financial crisis, as an alternative to devaluing China's currency. China has a similar rebate of a value-added tax (VAT) on semiconductors that are made and sold domestically, but that will end in April 2005 as part of a bilateral settlement with the US, which had challenged the domestic rebate as a violation of World Trade Organization rules.
By: DocMemory
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