Post by Sapphire Capital on Aug 4, 2008 4:13:44 GMT 4
China to end export tax rebate on cadmium products
Jul 31, 2008 Source: Rujun Shen
SHANGHAI (Reuters) - China will cancel export tax rebates on cadmium products and nickel-cadmium batteries from August 1, the State Administration of Taxation said on Thursday.
Cadmium, a bluish-white chemical element and a by-product of zinc production, is used predominantly to make batteries and pigments in plastic products.
The production of nickel-cadmium batteries, which have enjoyed a 5 percent export tax rebate, can damage the environment and workers' health, as cadmium is highly toxic and exposure can cause kidney damage and lung cancer.
The cut in tax rebates will make exports less attractive and squeeze profits for battery producers, but it had widely been expected since at least the start of the year and is therefore unlikely to deliver a major blow to the industry, analysts said.
"The tax rebate cut will have a limited impact on the industry, as it has been talked about for a long time," said an analyst with Beijing-based Asian Metal.
The export tax rebate for other forms of cadmium, such as cadmium powder or scrap, had already been reduced to zero.
Jul 31, 2008 Source: Rujun Shen
SHANGHAI (Reuters) - China will cancel export tax rebates on cadmium products and nickel-cadmium batteries from August 1, the State Administration of Taxation said on Thursday.
Cadmium, a bluish-white chemical element and a by-product of zinc production, is used predominantly to make batteries and pigments in plastic products.
The production of nickel-cadmium batteries, which have enjoyed a 5 percent export tax rebate, can damage the environment and workers' health, as cadmium is highly toxic and exposure can cause kidney damage and lung cancer.
The cut in tax rebates will make exports less attractive and squeeze profits for battery producers, but it had widely been expected since at least the start of the year and is therefore unlikely to deliver a major blow to the industry, analysts said.
"The tax rebate cut will have a limited impact on the industry, as it has been talked about for a long time," said an analyst with Beijing-based Asian Metal.
The export tax rebate for other forms of cadmium, such as cadmium powder or scrap, had already been reduced to zero.