China Cancels Export Tax Rebate on Wheat, Rice and Corn

SHANGHAI (Interfax-China) -- China will cancel the current export tax rebate on grain and grain flour products, including wheat, rice and corn, on Dec. 20 this year, the Ministry of Finance and the State General Administration of Taxation announced Monday evening.

Rice, wheat and corn currently enjoy a 13% export tax rebate.

The new grain export policy is aimed at restraining China's grain exports and ensuring domestic supply. It will also help cool domestic grain prices and ease inflationary pressure, Chinese state media reported today.

"The cancellation of the grain product export tax rebate will only have a limited effect on China's grain sector, as current tight supply in the domestic market does not leave much surplus for export," a grain expert from Xiamen Grain Group Shuangshan Trading Co., who wished to remain anonymous, told Interfax today.