On January 8, 2026, the Ministry of Finance and the State Taxation Administration jointly issued the "Announcement on Adjusting Export Tax Rebate Policies for Photovoltaic and Other Products." The announcement explicitly stipulates that, effective April 1, 2026, value-added tax (VAT) export tax rebates for photovoltaic and related products will be cancelled. A detailed list of the products involved is provided in Annex 1.

As can be seen from Annex 1, pure PVC powder (PVC), plasticized PVC, and non-plasticized PVC are all included in the scope of this cancellation of export tax rebates. Paste resin is not included and is not subject to adjustment.

According to verification on the official website of the State Taxation Administration, the current export tax rebate rate for PVC products in China is 13%. As required by the announcement, after the cancellation of this tax rebate policy, PVC products exported from April 1 onwards will no longer enjoy export tax rebate benefits.

The announcement also clarifies that for the products among those whose VAT export tax rebates have been cancelled, if any category is subject to consumption tax, the relevant export consumption tax policies will remain unchanged, and the consumption tax refund (exemption) policies will continue to apply according to current regulations. The applicable standard for export tax rebate rates for the products listed in this announcement is determined based on the export date indicated on the export customs declaration.

The specific impact of this policy adjustment on the PVC market still needs further observation. Before the policy officially takes effect on April 1st, PVC exports can still enjoy tax rebates as usual, giving domestic PVC export prices a certain price advantage, which is expected to encourage the market to expand export volume ahead of schedule and stimulate overseas buyers to concentrate their purchases. However, considering that after April, due to the impact of the policy adjustment, PVC export prices may fluctuate significantly, at which time the cost competition gap of PVC products in the Asian region will gradually narrow, and regional price competition is expected to intensify; at the same time, the competitiveness of US PVC products, with their low cost advantage, will be further enhanced, which may have a certain restraining effect on my country's PVC export volume.

From the perspective of long-term industrial development, this adjustment of the export tax rebate policy is expected to promote structural optimization of the domestic PVC industry, in line with the requirements of national energy consumption control and high-quality development, and will play a positive role in improving industrial concentration and enhancing the core competitiveness of products. Industry associations have stated that in recent years, my country's PVC exports have shown a trend of "increased volume but decreased price," with export prices continuing to decline and vicious price competition becoming prominent. This unreasonable competition model has led to the disguised transfer of fiscal funds originally intended to offset the value-added tax burden of domestic enterprises to overseas buyers during overseas price negotiations, effectively turning the export tax rebate policy into a subsidy for overseas end-user markets. This phenomenon not only causes profit losses for domestic enterprises but also significantly increases the risk of my country encountering international trade frictions such as anti-subsidy and anti-dumping measures, adversely affecting the overall interests and international image of the domestic PVC industry.

Timely cancellation of PVC export tax rebates would help push overseas PVC prices back to a rational range, effectively reduce the risks of international trade frictions faced by my country, and alleviate the national fiscal burden, promoting a more rational allocation of fiscal resources. Although adjusting export tax rebates is not a single way to completely solve the problem of "internal competition and externalization" in the industry, from a long-term development perspective, this measure can effectively control the rapid decline in PVC export prices, further reduce the probability of trade frictions, and lay a solid foundation for the high-quality development of the domestic PVC industry.