June 4, 2008

China to halt export tax refund on soy oil
 
  
China will stop refunding export taxes levied on soy oil from June 13, the Ministry of Finance (MOF) said Tuesday (June 3, 2008).

The recent move was part of the government's efforts to control the export of soy oil and 20 other kinds of vegetable oil.

Surging grain and food price in the international market has led experts to speculate that China's vegetable oil exports will soar, driving up prices in China.

The Food and Agriculture Organization of the UN last month said world food and grain prices would remain high for the next 10 years, led by rising demand, speculation and climate factors.

Vegetable oil prices are estimated to rise by 50 percent in the next 10 years, the UN report indicates.

The tax refund rate on vegetable oil exports has been 13 percent since September 2006.