From April, discounts on 22 battery-related goods will be cut from 9% to 6%, with a complete removal planned from 2027
It could add pressure to the battery sector, at a time when China is already urging the industry to curb excessive capacity expansion and avoid cut-throat competition.
Lithium, meanwhile, extended its recent rally on Monday, aided by expectations of a potential rush of battery-related exports ahead of the April policy changes.
The most active lithium carbonate futures rose by the 9 per cent limit on the Guangzhou Futures Exchange to 156,060 yuan (S$28,800) a tonne.
Some observers pointed to the limited impact of the tax changes to CATL, the world’s biggest electric-vehicle battery maker, given the company’s stronger pricing power and scale advantages.
Meanwhile, Beijing also said that it will cancel export tax rebates on solar cells, a move that lifted the shares of major Chinese solar companies.
The removal of such rebates was expected by the industry and will help accelerate industry consolidation by eliminating less efficient players, ultimately benefiting industry leaders, i
Source: Bloomberg
https://www.businesstimes.com.sg/compan ... ax-rebates
