Higher VAT rebate for rare earth magnet exports on Nov 1

SHANGHAI, Nov 1 (SMM) – Exports of China's rare earth permanent magnet products (HS code 85051110) will see a higher value-added tax (VAT) rebate rate of 16% from November 1, according to a notice released on the website of State Administration of Taxation on October 27. 

The plan was initially put forward at a State Council executive meeting chaired by Premier Li Keqiang on October 8. 

Effective from November 1, the tax rebate will be raised to 16% for exports that currently receive a rebate of 15% or 13%. The rebate will be raised to 10% for exports that currently receive a 9% rebate, though the rebate will be raised to 13% for some. For exports currently receiving a 5% rebate, the rate will be raised to 6%, with some to 10%.

The policy will also benefit the domestic aluminium industry, SMM learned.