Shanghai Daily: Business - shanghaidaily.com
THE Ministry of Finance said yesterday it would levy export taxes on wheat, corn, rice, soybeans and various processed grains in 2008. The move is apparently aimed at reining in surging domestic prices, which have driven up the inflation rate, and it comes just a week after China scrapped tax rebates for grain exports. The export tax rates will range from five to 25 percent and affect 57 types of grain and grain products. The rates for wheat and wheat products are 20 percent and 25 percent, respectively. The rate for corn, rice and soybean is five percent, while that for processed corn, rice and soybean products is 10 percent. The move "will contribute to preventing the country from importing high international grain prices and will lower price expectations in the domestic market," said Cheng Guoqiang, a senior researcher with the Institute of Market Economy, Development Research Center of China's cabinet. A week ago, the ministry said it would scrap a 13-percent