China to Cut Coal Import VAT and Port Charges Soon

China Knowledge cited Mr Hao Xiangbin a senior official with the China Coal Industry Association as saying that China, the world largest coal producer and consumer may soon lower value added tax and port charges on imported coal to encourage the country coal imports to ensure an effective supply of the fuel.

Mr Hao said that the Chinese government has been studying the adjustments of VAT and port charges on coal imports. He said that China net coal imports will remain high this year, likely hitting 150 million tonnes and are expected to increase in 2012 and 2013.

Mr Hao estimated that the country coal demand in the second half will be higher than that in the first half and that its total coal demand for 2011 will reach 3.73 billion tonnes up by 9.7%YoY.

In the first six months, China coal imports amounted to 70.49 million tonnes down by 11.8%YoY and its coal exports fell 13.7%YoY to 8.75 million tonnes. China saw its net coal imports decrease by 8.04 million metric tons or 11.5%YoY to 61.74 million tonnes.

China raw coal output reached 1.77 billion tonnes in the first half of this year representing a YoY increase of 13% and its coal sales volume reached 1.71 billion tonnes during the period, 14% more than a year ago.