The 30% rebate on 17% VAT, effective July 1, was jointly announced by China’s Ministry of Finance and the State Administration of Taxation last week.
The rebate is well below the 50% rate that market participants had been hoping for and is expected to have a limited impact on boosting copper scrap demand.
Market participants involved in smelting and processing scrap copper are most likely to benefit from the new rebate policy. However, a non-standard market in which the provision of scrap collection receipts is limited,...
