China boosts rubber recycling rebates - but tightens green rules

admin publish 2015/8/15 14:48:42

China has enforced a new version of a tax-rebate policy in the recycling industries with expanded coverage in the rubber recycling sector. 

Introduced at the beginning of last month by the country¡¯s ministry of finance and state administration of taxation, the policy offers a 50% rebate of value-added tax ¨C the rate of which is 17% on sales. 

Previously only companies recycling scrap rubber products to make pyrolysis oil were included; now the policy applies to firms using scrap tires or rubber products as feedstock to make re-treaded tyres and regenerated rubber and rubber powder, although such feedstock must account for no less than 95% of all raw materials. 

To obtain such rebates, companies will be required to meet ISO environmental standards in their manufacturing processes and products, which rules out most small workshops, or 60% of all manufacturers, according to Cao Qingxin, secretary general of Reclaimed Rubber Comprehensive Utilisation subcommittee under China Rubber Industry Association. 

¡°The new policy means a CNY300 (¡ê31) per tonne subsidy for companies in compliance with such standards and gives them a better chance to win the competition against workshops that offer much lower prices at environmental costs,¡± Cao told PRW¡¯s sister title, European Rubber Journal. 

¡°China¡¯s current anti-corruption campaign also makes it much harder for small workshops to obtain such ISO certificates by bribing local officials,¡± Cao added. 

¡°We can expect distinct changes in the landscape of the rubber recycling market within three years, and hope environmental pollution in the sector can be stopped by 2020.¡±

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