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China will offer tax rebates for machine parts, materials

China will give tax rebates to domestic companies on imports of machine parts and materials that can't be procured within the country, the Ministry of Finance said in a statement posted on its Web site today.

The rebates are meant to help domestic companies develop new products and raise international competitiveness, the ministry said. The refunded tax money should be used for research and development of new products, it said. The government will refund value-added and import taxes on parts and materials used to make and develop machines used by 16 sectors including energy, transportation, construction and agriculture, according to the statement. The government will also cancel tax exemptions for complete machines and sets of equipment, the ministry said in its statement, without being more specific. (Bloomberg)