Dear Valued Customer,
We would like to share an important update. On 9 January 2026, China’s Ministry of Finance officially announced adjustments to export tax refund policies affecting a wide range of commodities, including the ceramic tile industry. Effective 1 April 2026, ceramic tiles will no longer be eligible for value-added tax (VAT) refunds. This change reduces the export tax rebates for Chinese tile manufacturers from 9% to 0%, representing a significant impact on the industry.
The Role of Tax Rebates
In 1985, tax rebates were introduced to enhance the competitiveness of Chinese goods in international markets. By partially refunding the export taxes, the policy allowed Chinese companies to lower their prices in foreign markets, boosting demand and driving economic growth. Over the years, these rebates have undergone numerous adjustments, reflecting shifts in government strategy and market needs.
In the context of the ceramic tile industry, tax rebates enabled Chinese tile manufacturers to sell their products internationally at reduced costs. This benefitted not only the Chinese companies but also their foreign buyers, who could offer competitively priced tiles in their local markets.
9% to 0% Tax Rebates
With the complete elimination of export tax rebates, Chinese tile manufacturers will face significant challenges if they do not adapt to this regulatory change. Manufacturers will need to adjust their costs and pricing strategies to sustain operations and remain competitive in the long term.
Heritage Ceramics Response to Tax Rebate Adjustments
In light of these recent government changes, we are closely monitoring the market and any further announcements that could impact the industry, ensuring our strategies remain aligned with market adjustments. We are committed to keeping you informed with timely updates so you always have the latest information at hand.
To avoid any impact from the new policy, we recommend arranging shipments as soon as possible. Please be informed that confirmed shipments before 1 April 2026 will not be affected. In the coming days, our representatives will reach out to discuss your current orders and address any questions or concerns you may have. For any enquiries, please contact your sales representative or email us at info@heritageceramics.com.
We sincerely thank you for your understanding and continued support.
