Key Facts
The energy industry's import and export activities are facing policy adjustments. On the export side, VAT export rebates for battery products will be completely canceled; export rebates for solar products were canceled on April 1 this year. On the import side, the Ministry of Finance and other departments jointly issued preferential import tax policies for energy resource exploration, development and utilization during the 15th Five-Year Plan period. These policies exempt import tariffs on offshore oil exploration and development equipment and refund a portion of import-stage VAT on imported natural gas, reducing import costs for related industries.
Policy and Trade
The export tax rebate adjustment is being implemented in stages: for batteries, from one date to another, the VAT export rebate rate for battery products will be lowered from 9% to 6%, and then canceled. As early as 2024, the Ministry of Finance and other departments specified that export rebate rates for some refined oil products, solar products and battery products would be reduced from 13% to 9%. Industry insiders believe the export rebate taper will push up company costs in the short term and pass through to customers, but in the long term it will support the industry's shift from price competition to value competition, forcing companies to move toward technology premiums and brand building and potentially leading to industry consolidation.