China may expand exporters’ tax rebates to help them cope with a slump in trade growth, according to three people with direct knowledge of the plan, deploying a stimulus tool used during the global credit crunch.
The government may give a full rebate of the 17 percent value-added tax on products including furniture, shoes and toys, up from the current range of 13 percent to 15 percent, said the people, who asked not to be identified because the discussions are private. The policy may be rolled out as soon as this month, depending on whether trade remains weak, they said.
Dai Bohua, a spokesman for the Ministry of Finance, which oversees tax policy, didn’t answer the phone when Bloomberg News attempted to reach him three times today. The ministry didn’t immediately respond to faxed questions from Bloomberg News.