China Introduces New Copper Export Tax Credit

The Chinese Ministry of Finance has issued a statement that the government has decided to introduce a fresh tax credit on the export of certain copper products. In addition, an increase in the refund of export duties on some other products is envisaged. The government is doing this, most likely, to increase the supply of copper products from the country.

According to the Ministry of Finance, the government decided to introduce a tax credit of 9 percent on the export of copper bars and profiles starting in 2015. At the same time, the tax credit on the export of copper foil was increased from 13 to 17 percent.

Some of the country's leading copper producers welcomed the government's decision. Jiangxi, China's largest copper rod producer, plans to maximize the benefits of the new tax rebate by boosting exports, especially when domestic prices are below world market prices. The company also believes the solution could boost domestic consumption of refined copper used to make these products. Domestic copper demand in the country is expected to grow 6 percent in 2015 over the previous year.

State news company Antaike believes that the introduction of new export tax credits will boost exports of copper rods, bars and profiles to new record numbers. According to the government, the country exported 7.945 thousand tons of copper bars and profiles in eleven months of 2014.