Export tax on solar and wind power components

Will China reduce the export tax rebate for solar panels?

The Chinese Ministry of Finance and the State Administration of Taxation have revealed that the country will reduce the export tax rebate for 209 products, including solar PV cells and modules from 13% to 9%, starting from December 1, 2024.

Will China cancel export tax rebates for energy transformation?

China will cancel or reduce export tax rebates for a number of products starting from December 1, including several related to energy transformation, according to a November 15 document jointly issued by China’s Ministry of Finance and State Taxation Administration.

How will the end of the export tax rebate affect PV manufacturers?

The end of the export tax rebate will push up the manufacturing cost of PV manufacturers, bringing down their profits as module prices will then not be as competitive. It will curb their production expansion. As manufacturing costs go up for Chinese companies, their products will not be as cheap for overseas customers.

Should solar PV export tax rebate policy be abolished?

Southern Weekend quoted a solar PV industry insider as saying that the export tax rebate policy for the industry should be completely abolished because “China’s solar PV industry has developed to a mature stage and is the major player in the business”.

What is China's Export tax rebate policy?

It was introduced in order to enhance the competitiveness of exported goods in the international market. China officially implemented the rebate policy in 1985. According to the government document, the export tax rebates of 59 products will be cancelled, and those of another 209 products will be reduced from 13% to 9%.

How will China's new tax rate affect solar PV businesses?

At the 13% rate, China’s solar PV businesses will have received tax rebates totalling USD 3.43 billion. This would be reduced by just over USD 1 billion at the new 9% rate.