VAT reduction in China is giving boost to iron and steel

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Continuing tax cuts, urbanization, but also the redefinition of industrial production beyond raw materials, will assist in the development of the Chinese iron and steel industry over the coming years.

According to “The Economic Information Daily” newspaper, Beijing is pushing the 16% reduction in VAT to 13% for industrial production, resulting in a reduction in operating costs for industries of the sector.

At the same time, the reduction in total operating costs will continue throughout the iron and steel production and management chain as VAT is expected to fall for both transport and construction companies.