The Chinese Ministry of Finance has revised the sliding scale tax to increase duty on low-priced imports of cotton, the China Cotton Association said.
The price ceiling for taxing shipments at a maximum of 40 percent has been increased from 11,397 yuan/ton to 14,000 yuan/ton. This would result in levying of increased duty on overseas cotton that is priced lower than 14,000 yuan/ton, the association said.
The cotton imports that are priced higher than 14,000 yuan/ton will have to pay a flat tax rate of 570 yuan/ton.
The move is intended to ensure that cheap cotton imports do not compete with cotton produced domestically. However, the adjustment in tax formula is unlikely to have an immediate impact as the lowest import price of cotton is currently much higher than the 14,000 yuan/ton required for making the 40 percent tax rate applicable.
Chinese cotton imports reached 378,200 tons in November, nearly three times the imports of 2010, as per the statistics of China National Cotton Reserves Corporation that manages state inventory.
Fibre2fashion News Desk - China
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