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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (975)	10/10/2003 9:51:05 AM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China premier urges export tax rebate reform Reuters, 10.10.03, 6:16 AM ET BEIJING, Oct 10 (Reuters) - China must reform its system for giving tax breaks to exporters, a practise that has put pressure on swelling government spending and created economic imbalances, Premier Wen Jiabao said on Friday. Although some economists say a cut in the export tax rebate could help assuage concerns in the United States about its ballooning trade deficit with China, Wen made no mention of a reduction and gave no hint that international concerns were a factor in the push to reform. "In the past several years of fast export growth, delays in paying export tax rebates have grown more acute, affecting the normal production and operation of export enterprises, and have brought hidden dangers to state finances and economic operation," Wen told a forum called to discuss reform of the system. Reform would entail "structural adjustment" of the rebate rate, and creation of a new mechanism for deciding how much central and local governments should pay into the rebate scheme, the Xinhua news agency quoted Wen as saying. A new system should focus on making speedy repayments and catching up on past rebates, which exporters complain can go unpaid for months. Exports have been a major factor in China's economy but the government is expected to fall behind on 300 billion yuan ($36 billion) in rebate payments by the end of this year, up 50 percent from a year earlier. forbes.com