China’s 2025 VAT Rebate Reduction to Deter Clean Oil Product Exports: Freight News Update

• China is reducing VAT rebates for clean oil product exports in 2025
• The reduction in tax rebates will be effective on December 1
• The move is aimed at directing earnings inward for domestic development
• The reduction in VAT rebates will also apply to photovoltaics, batteries, and non-metallic mineral products
• The reduction in VAT rebates will cap export margins for some industrial sources
• The tax cost for gasoline, gasoil, and jet fuel exports is estimated to be between $2.8/b and $3.4/b
• Market sources expect China’s clean oil product exports in 2025 to remain largely unchanged from 2024 volumes

Source: hellenicshippingnews.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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