China has introduced a 4% consumption tax on lead acid batteries and coating materials from February 2015.
The country’s Ministry of Finance and the State Administration of Taxation announced the levy in order to promote energy saving and environmental protection, according to reports on Shanghai Metals Market (SMM) website.
The tax will be levied on both primary batteries and storage batteries.
However, the same tax will not be levied on mercury-free primary batteries, nickel metal hydride rechargeable batteries, lithium primary batteries, lithium storage batteries, solar cells, fuel cells and all-vanadium redox-flow cells.
No consumption tax will be levied on lead-acid batteries before December 31, 2015, with the first 4% consumption tax due from January 1, 2016.
China imported 745,700 units of lead-acid batteries in September 2014, up 16.10% month-on-month, according to a separate report by SMM. The report added the growth of imports had happens against the backdrop of weak consumption in China’s domestic lead-acid battery market. Imports are thought to have mainly originated from US, Japan, Germany and Australia.