Oilfield Instrument Vehicle
On November 1, the Chinese government increased the tax rebate rate for certain export commodities, prompting the Ministry of Finance and the State Administration of Taxation to issue a notice titled "Notice on Raising the VAT Refund Rate for Product-involved Products such as Labor-Intensive Products." This new policy applies to goods under 423 tariff lines and will take effect from December 1, 2008, aiming to boost exports by offering higher tax refunds.
Pharmaceutical companies are among the biggest beneficiaries of this adjustment. According to a comparative analysis by Liu Jianting, a researcher at Health Network, the range of medical products affected has expanded compared to previous rounds. For example, antipyretic and analgesic drugs, along with cardiovascular and cerebrovascular medications, are now included in the tax increase. Specific examples include paracetamol (customs code 29242920) and aspirin (customs code 29182210), which fall under various codes within the 2929210010–2925190090 range.
Additionally, items like clavulanic acid, growth hormone derivatives, erythropoietin (EPO), glycyrrhizic acid, choline, and glutamic acid also face a 4% tax increase. This round covers a broader scope of bulk drugs and medicines, particularly focusing on two key API categories: antipyretic analgesics and cardiovascular drugs.
Qiao Haili, director of the Western Medicine Department at the China Chamber of Commerce for the Import and Export of Chinese Medicines and Health Products, expressed surprise at the sudden announcement. “In the past, we were consulted before any changes. This time, it was just posted without prior discussion,†she said, emphasizing the need for careful review.
She explained that the tax increase is part of a broader effort to reverse earlier reductions in export tax rebates, especially for raw material drugs. With the global financial crisis impacting exports, the government has gradually raised tax rebates to stimulate trade. This includes bulk raw medicines like antipyretics, which are now included in the rebate list.
Despite the increase, Qiao noted that many APIs still haven’t reached pre-reduction levels. However, even small increases can have a positive impact on export competitiveness.
Wang Yunbiao, general manager of Huayun International, believes the tax rebate hike will improve the competitiveness of Chinese exports, especially in the bulk drug market where competition with India is fierce. He added that while tax rebates are an effective tool, a comprehensive approach—such as improving marketing and promoting high-value products—is also needed.
Looking ahead, Wang predicts that patented drugs may see limited demand due to the economic climate, while affordable generic medicines and basic treatments could expand their markets. In this context, increasing tax rebates could amplify China’s competitive advantages during the global crisis.
An executive from an antibiotic company in Hebei noted that while the RMB exchange rate has stabilized around 6.8 to 1, the government’s move to raise tax rebates reflects a positive stance. It helps boost business confidence and encourages companies to shift toward more sustainable growth models.
However, the executive also pointed out a concern: the time it takes for the government to process tax refunds has been increasing. While raising rebates is beneficial, timely implementation remains crucial for businesses.
In contrast, on November 9, five citric acid producers were banned from exporting due to environmental non-compliance. The Ministry of Environmental Protection conducts periodic checks on citric acid manufacturers, granting production and export permits only to those meeting environmental standards.
A responsible official highlighted that the government's focus remains on promoting economic restructuring and industrial upgrades. Recent policy updates show fewer "high-polluting, high-energy" products and more emphasis on high-value-added items like potassium clavulanate and EPO, which help ease employment pressures and support labor-intensive sectors through tax incentives.
Car Covers,Car Body Cover,Car Cover Outdoor Waterproof,Proof Dust Cover,Car Cover Outdoor,Car Cover Waterproof,Car Protection Cover
Shaoxing Haoto Trading Co.,Ltd , https://www.hotooutdoor.com