Consumption Tax on Lead-Acid Battery Worries Chinese Battery Producers

Published: Jan 29, 2015 18:03

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China has decided to impose a 4% consumption tax on lead-acid batteries starting from January 1, 2016, triggering concerns among Chinese battery producers.

SHANGHAI, Jan. 29 (SMM) – China has decided to impose a 4% consumption tax on lead-acid batteries starting from January 1, 2016, triggering concerns among Chinese battery producers.

China’s lead-acid battery consumption has remained sluggish for long, leaving slim chance for producers to pass the tax on to consumers.

China’s lead-acid battery exports grew nearly 40% in 2014, but export prices were depressed, leaving meager margins for exporters. The consumption tax will make Chinese batteries less competitive in global markets.

Moreover, some feared that large, certified battery producers will be hit should illegal producers manage to avoid the consumption tax.

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