China to cancel export tax rebates for photovoltaic, battery products

China has announced that it will change export tax rebates for a range of products, including photovoltaic and battery products.

The announcement, jointly issued by the Ministry of Finance and the State Taxation Administration, said that export tax rebates for the value added tax of photovoltaic products will be canceled starting from April 1, 2026.

Meanwhile, the export tax rebate rate for the value added tax of battery products will be reduced from 9 percent to 6 percent starting from April 1, 2026, and will be eliminated starting from Jan 1, 2027, according to the announcement.

As seen from an appendix detailing the products subject to the suspension of export tax rebates posted by MOF, toughened (tempered) safety glass for aircraft, spacecraft, and vessels, PV cells assembled or not assembled in modules or made up into panels, as well as electronic cigarettes and similar personal electric vaporizing devices were included.

The export tax rebate for battery products will be phased out over two years, which included primary lithium batteries, lithium-ion accumulators and zinc-air primary cells and primary batteries, according to MOF.

The move is welcomed by China's domestic industry, with the China Photovoltaic Industry Association saying that the measure will help restore rational pricing in foreign markets and reduce the risk of trade frictions for China.

Over the long term, the measure will help prevent export prices from falling too rapidly and lower the risk of trade disputes further, according to the association.