China Rescinds Tax Refund On Grains
19 12 2007The China government has just declared that starting from December 20, 2007 they will cancel tax refunds for 84 kinds of grains and powder products. Some of the items involved include wheat, rice, corn, soybeans etc. The purpose behind the withdrawal is to guarantee enough supply of grains to the domestic market and to stabilize the domestic grain prices and finally to relieve trade surplus.
We as importers of frozen vegetables from China are concerned because this could be the harbinger of things to come. The elimination of tax refunds for frozen vegetable exports. This would have a dramatic impact upon frozen vegetables or any vegetable for that matter of more than a 10% cost increase because of the loss of the tax refund.
Let’s keep our eyes on China and see what the next move brings.
Technorati Tags: Noon International, China, vegetable
