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Chinese Solar Power Product Manufacturers Offered VAT Rebate

As you are no doubt aware China’s solar power manufacturing industry has been going through extremely troubled times in recent months. They have hardly had the best of relationships with the USA and European Union member countries with claims and counter claims being made and additional tariffs imposed on China.

Solar panel manufacturing in China has been going through troubled times

There have been some companies that have ceased trading with huge debts as their turnover dropped and they were left with vast stockpiles of solar panels that they were unable to shift in a reasonable timescale at a sustainable pricing structure. It is estimated that China’s top ten solar panel manufacturers have anything up to £10 billion of debt. There is also the connected problem of high levels of pollution in certain parts of China and you may well have seen photographs of the smog in certain locations confirming this.

The Chinese government has no doubt been looking at ways of bolstering the faltering solar panel industry and it has now come up with an interesting offer to solar power product manufacturers in the country. It has been reported that the government in China is prepared to give tax rebates to these manufacturers.

These manufacturers will receive a value added tax (VAT) refund of 50% during the period running from 1st October 2013 to 31st December 2015. It will be interesting to monitor the impact of this offer on the solar power industry in China. Is it really going to make a sufficient difference to the performance to those companies that have been able, so far, to “weather the storm”?

Of course, the future is uncertain in any business environment and the solar panel industry is no different. However, would it not be in everyone’s best interest if trading conditions between all the countries involved were able to improve?

As always, we would welcome comments from our readers.

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