Source: CCTV.com

02-06-2007 15:23

Industrial sources say China is considering removing or reducing value-added tax rebates on some steel products. This comes following a US complaint to the WTO on Friday over the country's export subsidies.

Under the new regime, an 8 percent VAT rebate would be reduced to zero for many low-end steel products, while rebates on other products, currently at 13 percent, would be cut to five percent. This is still under discussion between the government and steel industry association. But sources say a final decision is likely before the Lunar New Year, which falls on February 18th.

Meanwhile Luo Bingsheng, vice chairman of the China Iron and Steel Association, says China has been in discussions with major steel importers, but was also ready to go to court, if needed.

Editor:Du Xiaodan