Heavy! How big is the impact of the cancellation of the tax rebate for steel?
- Author:Kyrie
- Source:Sunny
- Release Date:2021-04-30
On April 28, the steel industry once again welcomed the heavy policy.
According to the website of the Ministry of Finance, the Tariff Commission of the State Council issued an announcement stating that tariffs on some steel products will be adjusted from May 1. At the same time, the Ministry of Finance and the State Administration of Taxation issued an announcement on the cancellation of export tax rebates for certain steel products.
The analysis believes that in order to make up for the supply gap caused by the decline in domestic crude steel production, the state has cancelled the export tax rebate policy for some steel products. China exports 60-70 million tons of steel a year, and the abolition of export tax rebates will cause most of the steel to return to the country or cool the steel market.
Some steel products adjust tariffs and cancel export tax rebates
The State Council Tariff Commission’s “Announcement on Adjusting Tariffs on Certain Steel Products” stated that in order to better protect the supply of steel resources and promote the high-quality development of the steel industry, with the approval of the State Council, the State Council’s Tariff Commission recently issued an announcement, effective May 1, 2021 Beginning to adjust the tariffs on some steel products.
Among them, the zero import tariff rate for pig iron, crude steel, recycled steel raw materials, ferrochrome and other products is implemented; the export tariffs for ferrosilicon, ferrochrome, high-purity pig iron and other products are appropriately increased, and the export tax rate of 25% and 20% are respectively implemented after adjustment. % Temporary export tax rate, 15% temporary export tax rate.
The Ministry of Finance and the State Administration of Taxation issued the "Announcement on the Cancellation of Export Tax Rebates for Certain Steel Products" stating that from May 1, 2021, export tax rebates for certain steel products will be cancelled. The specific execution time shall be defined by the export date indicated on the export goods declaration form.
Heavy! What is the impact of the cancellation of the tax rebate for steel?
The Tariff Commission of the State Council stated that the above adjustment measures will help reduce import costs, expand imports of steel resources, support domestic reduction in crude steel production, guide the steel industry to reduce total energy consumption, and promote the transformation, upgrading and high-quality development of the steel industry.
What is the impact of the cancellation of export tax rebates for steel?
At the beginning of April, the National Development and Reform Commission and the Ministry of Industry and Information Technology conducted research and deployment on the “look back” of steel capacity reduction in 2021 and the reduction of crude steel output. The reduction of crude steel output in 2021 will focus on reducing the crude steel output of companies with poor environmental performance, high energy consumption, and relatively backward technological equipment levels, avoiding “one size fits all” and ensuring a year-on-year decline in national crude steel output in 2021.
In addition, since December last year, the Ministry of Industry and Information Technology has repeatedly mentioned that reducing production in the steel industry is an important measure to implement the goal of "carbon peak and carbon neutrality".
According to data from the China Iron and Steel Association, in early April 2021, key statistical iron and steel enterprises produced a total of 22,739,300 tons of crude steel. The average daily output of crude steel this week was 2,273,900 tons, a month-on-month increase of 2.88% and a year-on-year increase of 16.86%.
According to the research report of China Securities, the output of crude steel is still positive year-on-year so far. To achieve negative growth throughout the year, a larger-scale production reduction action will be required in the later period.
In view of the continuous growth of demand but the imminent reduction of crude steel output, guiding the adjustment of imports and exports is a favorable means, and the tax rebate for steel exports is cancelled, thereby leading the reform of imports and exports in the medium and long-term dimensions. However, the mismatch between overseas supply and demand is more serious this year, and the effect of the abolition of short-term tax rebates is expected to be more effective.
According to the website of the Ministry of Finance, the Tariff Commission of the State Council issued an announcement stating that tariffs on some steel products will be adjusted from May 1. At the same time, the Ministry of Finance and the State Administration of Taxation issued an announcement on the cancellation of export tax rebates for certain steel products.
The analysis believes that in order to make up for the supply gap caused by the decline in domestic crude steel production, the state has cancelled the export tax rebate policy for some steel products. China exports 60-70 million tons of steel a year, and the abolition of export tax rebates will cause most of the steel to return to the country or cool the steel market.
Some steel products adjust tariffs and cancel export tax rebates
The State Council Tariff Commission’s “Announcement on Adjusting Tariffs on Certain Steel Products” stated that in order to better protect the supply of steel resources and promote the high-quality development of the steel industry, with the approval of the State Council, the State Council’s Tariff Commission recently issued an announcement, effective May 1, 2021 Beginning to adjust the tariffs on some steel products.
Among them, the zero import tariff rate for pig iron, crude steel, recycled steel raw materials, ferrochrome and other products is implemented; the export tariffs for ferrosilicon, ferrochrome, high-purity pig iron and other products are appropriately increased, and the export tax rate of 25% and 20% are respectively implemented after adjustment. % Temporary export tax rate, 15% temporary export tax rate.
The Ministry of Finance and the State Administration of Taxation issued the "Announcement on the Cancellation of Export Tax Rebates for Certain Steel Products" stating that from May 1, 2021, export tax rebates for certain steel products will be cancelled. The specific execution time shall be defined by the export date indicated on the export goods declaration form.
Heavy! What is the impact of the cancellation of the tax rebate for steel?
The Tariff Commission of the State Council stated that the above adjustment measures will help reduce import costs, expand imports of steel resources, support domestic reduction in crude steel production, guide the steel industry to reduce total energy consumption, and promote the transformation, upgrading and high-quality development of the steel industry.
What is the impact of the cancellation of export tax rebates for steel?
At the beginning of April, the National Development and Reform Commission and the Ministry of Industry and Information Technology conducted research and deployment on the “look back” of steel capacity reduction in 2021 and the reduction of crude steel output. The reduction of crude steel output in 2021 will focus on reducing the crude steel output of companies with poor environmental performance, high energy consumption, and relatively backward technological equipment levels, avoiding “one size fits all” and ensuring a year-on-year decline in national crude steel output in 2021.
In addition, since December last year, the Ministry of Industry and Information Technology has repeatedly mentioned that reducing production in the steel industry is an important measure to implement the goal of "carbon peak and carbon neutrality".
According to data from the China Iron and Steel Association, in early April 2021, key statistical iron and steel enterprises produced a total of 22,739,300 tons of crude steel. The average daily output of crude steel this week was 2,273,900 tons, a month-on-month increase of 2.88% and a year-on-year increase of 16.86%.
According to the research report of China Securities, the output of crude steel is still positive year-on-year so far. To achieve negative growth throughout the year, a larger-scale production reduction action will be required in the later period.
In view of the continuous growth of demand but the imminent reduction of crude steel output, guiding the adjustment of imports and exports is a favorable means, and the tax rebate for steel exports is cancelled, thereby leading the reform of imports and exports in the medium and long-term dimensions. However, the mismatch between overseas supply and demand is more serious this year, and the effect of the abolition of short-term tax rebates is expected to be more effective.