China May Change Tax Rules For Some Steel Exporters
In a blog post last week, the Coalition for a Prosperous America reported China may change some tax rules affecting the country’s steel producers and mills. Contributer Ellen Croibier said it’s rumored China next year (2015) will get rid of export tax incentives that allow exporters to be refunded part of the value-added tax (VAT). Croibier said this new policy “would likely target boron-added steel affecting mainly hot rolled coil and long products” and also reported “some exporters [are] not accepting orders to be shipped early next year due to the potential risk of not being able to claim a VAT rebate on them.”
However, Croibier also cautioned that some “mills might be able to evade the removal of export rebates on boron products by replacing boron with chrome.” Indeed, Croibier said some mills have already adopted this strategy. Read Croibier’s the full blog post here.