Reduced VAT for renewable energy

Country	China
Year Implemented	2001 (expanded 2003)
Policy Status	In force
Agency	•Ministry of Finance and the State Tax Authorities
Policy Type	•Financial   •Taxes and Tax Incentives     •Tax Reduction
Policy Target	•Bioenergy   •Biomass for Power •Wind
Policy Sector	•Electricity
Description	In 2001 value added tax (VAT) for wind power cut in half, to 8.5% (normal rate 17%). In the same year, a circular determined that VAT collected for using municipal solid waste for power generation would be refunded back to the producer. In 2003, the VAT for biogas production was also reduced to 13%.
URL	www.mof.gov.cn