China reintroduces VAT rebate on scrap copper starting July 1

China has reintroduced a rebate for the VAT that importers must pay on copper scrap, though the size of the new refund is well below what many in the market were expecting.

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,...

Published

Kiki Kang

July 01, 2015

09:58 GMT

Shanghai