On November 15, the Ministry of Finance and the State Administration of Taxation jointly issued the Announcement on Adjusting the Export tax rebate Policy, which plans to implement a series of important adjustments from December 1, 2024.
Since January 2009, all secondary lead companies VAT exemption polices were canceled and the policy became 70% tax rebate in 2009 and 50% tax rebate in 2010. In 2011, the tax rebate policy was stopped and this policy greatly increased the secondary lead enterprises’ operating burden.
In 2011, the tax rebate policy was stopped and this policy greatly increased the secondary lead enterprises’ operating burden. After that, through a series of petitions, this policy was changed to only give formal enterprises preferential taxation (Shang and Ma, 2013).
This includes the removal of import taxes on lithium chloride, lithium carbonate, nickel sulphate, and cobalt carbonate, all previously set at 5%. Additionally, China eliminated the 3% import tax on low-arsenic fluorite, a crucial material for electrolyte production in lithium-ion batteries.
Externally, the reduction of export tax rebate rate is also to offer an olive branch to Western countries, reduce the low price dumping of enterprises in the international market by reducing tax rebate subsidies, thereby reducing the initiation of anti-dumping and trade wars, and help ease trade tensions.
Second, large quantities of lead-acid batteries are imported every year but according to the provisions of “Control of Trans boundary Movements of Hazardous Wastes and their Disposal, Basel Convention”, the scrap batteries can only be recycled and used in their own country.