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China’s Consumption Tax on Coatings: Controversy Abounds

According to a notice issued by the Chinese Ministry of Finance (MOF) in January 2015, a 4% consumption tax would be applied to batteries and coatings that meet certain criteria. On Dec 29th 2015, the State Administration of Taxation issued another notice, stating that the grace period for the battery consumption tax was over, meaning taxation on batteries and coatings went into full effect.

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