China may overhaul its steel tax policies to include lower export rebates and import duties or no import duties altogether on some steel products. The country may also reduce value-added tax for domestic iron ore producers or total tax exemptions.
These tax changes are aimed at bolstering China’s efforts to achieve carbon-neutrality. The country wants to reduce steel exports and increase imports to cut domestic steel production that accounts for 15pc carbon emissions.
Most steelmakers have come under the government’s scrutiny since the country plans to reduce overall emissions by 30pc in 2030 and gradually achieve carbon neutrality by 2060.
Policymakers have already issued a draft of output restrictions in Tangshan, China’s steelmaking hub, to curb production levels.