BEIJING, Jan 9 (Reuters) – China will cancel value-added tax export rebates for photovoltaic products from April 1, the finance ministry said in a joint statement with the State Taxation Administration on Friday.
The ministry also said VAT export rebates for battery products will be cut to 6% from 9% between April and December and scrapped entirely from January 1, 2027.
Consumption-tax rebate rules for these products will remain unchanged, the statement added.
The China Photovoltaic Industry Association, in a statement later on Friday, said the move should help curb an excessive decline of export prices in the long run as China’s PV products face intensifying competition in overseas markets.
It noted that some Chinese exporters were using rebates as a price discount for foreign buyers.
“Timely reduction or cancellation of export rebates for photovoltaic products can help promote a rational return of foreign market prices and reduce the risk of trade frictions,” the association said.
China previously reduced the export tax rebate for PV products to 9% from 13% in December 2024 as part of its broader efforts to curb overcapacity and deflationary price wars amid international trade tensions.
Reuters