SHANGHAI Chinese lead-acid battery makers are calling on
the central government to delay or reconsider a new tax on
battery consumption that is likely to hit the local industry.
We hope the government will hold off (on) the tax until
battery makers are on track for healthy development, Zhou
Zhaoxue, director of major battery maker Chilwee Chuangyuan
Industrial Co. Ltd., said over the weekend at the 2013 (8th)
Shanghai Lead and Zinc Summit, hosted by Shanghai Metals
China is mulling a 5-percent tax on lead-acid battery
consumption as a measure to help protect the environment.
If the government imposes the tax, it will force battery
makers to further compress their costs. Producers have been
selling batteries at cost ... or even below cost since October
last year, Zhou said.
The state taxation administration and the ministry of finance
have finished soliciting suggestions and opinions for the plan,
but there is no timetable for the tax to kick off.
Battery makers worry that the tax will cripple their export
It will raise serious problems for exporters. In other
Southeast Asian countries like Indonesia and Vietnam, there is
no such tax. Such a tax will only shut the door for
Chinas battery exports, another major battery maker
Lead-acid battery output accounts for about 70 percent of
Chinas lead consumption.
A version of this article was
first published by AMM sister publication Metal