Ministry of Finance News: To improve the export tax rebate policy, the VAT export tax rebate rate will be increased for products such as electromechanical and cultural. Details as follows:
1. Increase the export tax rebate rate for multi-component integrated circuits, non-electromagnetic interference filters, books, newspapers, and other products to 16%.
The export tax rebate rate for bamboo carvings, wood fans, and other products will be increased to 13%.
The export tax rebate rate for basalt fiber and its products, safety pins and other products will be increased to 9%.
2. The notice shall be implemented from September 15, 2018. The export tax rebate rate applicable to the goods listed in the notification is defined by the export date indicated on the export goods declaration form.
Impact on the LED lighting industry:
The most significant change in effects is the 85395000 light-emitting diodes (LED) bulb (tube), mainly for alternative light source products, the tax rebate rate increased from 13% to 16%. According to the China Lighting Association, the export value of the first half of the year was about 3 billion US dollars. According to this estimate, the annual tax rebate will increase by approximately 200 million US dollars. For reference, in 2017 China’s LED lighting exports amounted to 21 billion US dollars.
It should also be noted that “85395000” is not included in the US tax increase list.