AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Tax-based export incentive
On 3 June 2009, the government of China raised the Value Added Tax(VAT) rebates for designated textile and garment exports. Exporters of the benefiting products may recuperate part of the VAT included in intermediate products.
Instead of the general Chinese VAT of 17 percent, intermediates used in these exports shall only be subject to a VAT of 2 to 12 percent. 130 products have been exempted from VAT on included intermediates altogether.