The deputy director of Chinese Ministry of commerce has said that there shall be a plenty of space for export rebates to jump ahead and it can be lifted to as much as covering all taxes at an appropriate instance of time. He noted that major export markets of the country shrunk in the wake of global economy conditions.
According to statistics revealed by customs Department of China, the total import and export volume of the country in January 2009 and February 2009 declined 27.2% year on year as compared to same duration of previous year. The State Council introduced 20 measures for the sake of promoting exports. Analysts have said that markets require more support of this sort.
One of the 2 fair trade policies is the policy of free export. A minor hike of as little as 1% on export rebate can bring a couple of small and medium foreign traders into the country. In other countries, export enterprises usually receive total tax refund ore free exports facility where as in China, average tax is still 9.8%, with 15.25% for farm products and 8.9% for industrial equipment and commodities.