The Chinese Ministry of Finance's recent revision of the sliding scale tax to increase duty on low-priced imports of cotton is expected to provide support to domestic cotton market.
The price ceiling for taxing cotton imports at a maximum of 40 percent was increased from 11,397 yuan/ton to 14,000 yuan/ton.
Experts say the import cost of cotton will increase after the new adjusted sliding tax comes into play, compared to the price prevailing earlier.
This is likely to play a significant role in lessening the impact of imported cotton on domestic market and protecting the interests of cotton growers.
Thus, the adjusted sliding tax is expected to provide support to domestic cotton price.
Fibre2fashion News Desk - China
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