China scraps export tax rebates on photovoltaic and batteries

China will cancel value-added export rebates on photovoltaic products from April 1, according to a Friday joint statement by the Finance?Ministry and the State Taxation Administration.

The ministry has also announced that the VAT export rebates on battery products would be reduced to 6% between April and Decemeber from 9% and then completely eliminated from January 1, 2027.

The statement also added that the rules on consumption-tax rebates for these products would?remain unchanged.

In a later statement?on Friday?, the China Photovoltaic Industry Association said that the move would 'help curb an excessive decline in export prices on the long term as China's products are facing intensifying competition overseas.

The report noted that certain Chinese exporters used rebates to offer a discount on their products for foreign buyers.

The association stated that "timely cancellation or reduction of export rebates can help promote a rational return to foreign market prices?and reduce risk of trade frictions."

China reduced the export tax rebates for PV products from 13% to 9% in December 2024, as part of its broader efforts aimed at curbing overcapacity. (Reporting and editing by Shi Bu, Ryan Woo and Joe Bavier.

(source: Reuters)