CRU: China's Tax Reform and Impact on Aluminium Market

CRU: China's Tax Reform and Impact on Aluminium Market

PR Newswire

LONDON, March 12, 2019

LONDON, March 12, 2019 /PRNewswire/ -- The second session of the 13th National People's Congress (NPC) and the National Committee of the Chinese People's Political Consultative Conference (CPPCC) opened in Beijing on 5 March 2019.

China’s tax reform and impact on aluminium market
CRU Logo

CRU's Economics team has written an Insight on what occurred and what it means for the macroeconomy - National People's Congress 2019: The year of lower growth and modest stimulus.

As the Economics Insight discusses manufacturing sector VAT rates reduced from 16% in 2018 to 13% in 2019. And transport and construction sector VAT rates are reduced from 10% in 2018 to 9% in 2018. As the Economics Insight also discusses the government has also pledged to step up efforts to support small enterprises. The support measures include a cut in the required reserve ratio (RRR) for small enterprises. as well as a 30% growth target of loans to small enterprises by the large national banks.

This follows on from VAT cuts that occurred in 2018. In May 2018, the VAT rate was lowered from 17% to 16% for manufacturing and some other industries, and from 11% to 10% for transportation, construction, basic telecommunication services and farm produce. Currently, China's VAT has three categories – 16% (covering most manufacturing sectors), 10% (basic goods and services), and 6% (higher value-added services, like finance industry).

China's plan to further tax reduction this year has been generally welcomed by commodity markets including aluminium, as the manufacturers have the potential to improve their profitability by paying less for their raw material, or for other inputs into their production process.

Read the full story:

Read more about CRU:

About CRU

CRU offers unrivalled business intelligence on the global metals, mining and fertilizer industries through market analysis, price assessments, consultancy and events.

Since our foundation by Robert Perlman in 1969, we have consistently invested in primary research and robust methodologies, and developed expert teams in key locations worldwide, including in hard-to-reach markets such as China.

CRU employs over 280 experts and has more than 11 offices around the world, in Europe, the Americas, China, Asia and Australia – our office in Beijing opened in 2004 and Singapore in 2018.

When facing critical business decisions, you can rely on our first-hand knowledge to give you a complete view of a commodity market. And you can engage with our experts directly, for the full picture and a personalised response.

CRU – big enough to deliver a high-quality service, small enough to care about all of our customers.

Voltar noticias em Inglês