In order to support the safe and stable supply of domestic coal, the import tariff on coal will be temporarily set at zero from April 1 to December 31 this year.
The tariff adjustment applies to various kinds of coal including anthracite, coking coal, bituminous coal, coal briquettes, coal balls and lignite. Before the adjustment, the general tax rate for coal in 2022 was between 20 percent and 50 percent, and the most-favored-nation tax rate was between 3 percent and 6 percent, and now all the tariff rates are at zero after the adjustment.
Qin Wei, deputy general manager of Ningxia Qinlian Energy Group Co Ltd, said that the company is expected to import 300,000 tons of coking coal this year. With the tariff rate reduced to zero, the company can save more than 4 million yuan ($581,296) in taxes. The tax reduction policy has greatly reduced the company's import costs, eased financial pressure, and strengthened confidence in development.
The company mainly engages in coal import and trade. With the reduction of coal import tariffs and the completion of the China (Ningxia)-Mongolia commodity cross-border trading platform, the company will lead the way among Ningxia coal companies to sign more import contracts with Mongolia this year, further releasing advanced coal production capacity and strengthening the coal industry in Ningxia.
According to staff members from the Yinchuan Customs, the tariff adjustment has played a positive role in maintaining the safe and stable supply of domestic coal and promoting enterprises to expand imports.
Firstly, the tariff adjustment helps enterprises reduce import costs and increases import of high-quality coal. Secondly, it can mitigate the challenges of coal demand and supply in the Ningxia Hui autonomous region, amd make further strides towards high-quality development. Thirdly, it will reduce domestic coal mining and protect the environment.
In addition, the tariff adjustment will further expand the scope of deep processing activities in the coal industry, promote the transformation and upgrading of coal production enterprises and technologies, facilitate the clean and efficient use of coal, reduce emissions of smoke, sulfur and nitrogen, and take the country closer to achieving carbon peaking and carbon neutrality.
