P. R. China state council issued the circular on lowering the rates of tax refund for export on Oct. 6, 1995, mainly concerning international trade conducted by entities in P. R. China territories. The full text is as following:

Circular of the State Council on Lowering the Rates of Tax Refund for Export

The state policy on tax refunds for export, having been implemented since 1985, has played a positive role in encouraging export trade, adding to foreign exchange earnings and promoting the development of the national economy. However, there are some problems existing at present, such as less payment with more refund, and a refund scale extending beyond financial burdens.

With a view to giving consideration to both foreign trade development and the financial situation, the State Council has decided to lower the rates of tax refund for export. Relevant stipulations are hereby notified as follows:

1. With regard to export goods declared and leaving the country after January 1, 1996 (inclusive), the refund sum shall be calculated at the following rates: (1) For coal and agricultural products, the rate of tax refund for export shall remain at 3 percent; (2) For industrial products processed with agricultural products as raw materials and other goods on which a value-added tax is collected at the rate of 13 percent, the rate of tax refund for export shall be lowered from 10 percent to 6 percent; and(3) For other goods on which a value-added tax is collected at the rate of 17 percent, the rate of tax refund for export shall be lowered from 14 percent to 9 percent.