BEIJING, May 27: China will reinstate a tax rebate of 17 per cent on the exports of some IT products to improve the competitiveness of domestic companies, the Ministry of Commerce said on Friday.

“The exports of integrated circuits, mobile telecom equipment, computer, displays, certain digital machines and containers inspection systems, will enjoy the old tax rebate rate of 17 per cent,” the ministry announced. The rebate was scrapped earlier this year.

Resuming the rebate system on these products will not only strengthen the competitiveness of domestic companies but also encourage their exports, the commerce ministry said.

Exports of IT products from China are expected to grow at least 35 per cent year-on-year from $200 billion in 2004, the ministry said, without providing further details.—AFP