Starting in April 2026, export tax rebates for photovoltaic products will be cancelled, which industry associations say will help prices return to a more rational level.

On January 9, 2026, the Ministry of Finance and the State Taxation Administration issued the “Announcement on Adjusting the Export Tax Rebate Policy for Photovoltaic and Other Products.” The announcement stated that value-added tax (VAT) export tax rebates for photovoltaic and other products would be cancelled starting April 1, 2026. Simultaneously, from April 1, 2026 to December 31, 2026, the VAT export tax rebate rate for battery products would be reduced from 9% to 6%; and from January 1, 2027, the VAT export tax rebate for battery products would also be cancelled. Regarding the cancellation of VAT export tax rebates for photovoltaic and other products starting April 1, the China Photovoltaic Industry Association issued a statement on the same day expressing its views. The association believes that timely reduction or cancellation of export tax rebates for photovoltaic products has many positive implications. First, it helps to promote a rational return of prices in overseas markets. Since 2024, my country’s photovoltaic products have faced increasingly fierce competition in overseas markets, with export prices continuing to decline, showing a trend of “increased volume but decreased price.” In order to secure orders in exports, some companies not only engage in low-price competition but also convert export tax rebates into negotiating leverage with overseas buyers. This means that fiscal funds originally intended to offset the domestic VAT burden are transferred to overseas purchasers during the negotiation process. The export tax rebate policy has essentially become a subsidy for overseas end-markets, leading not only to profit losses for domestic companies but also significantly increasing the risk of my country’s photovoltaic industry suffering from international trade frictions such as anti-subsidy and anti-dumping measures, negatively impacting the overall interests and international image of China’s photovoltaic industry. Secondly, canceling export tax rebates can effectively alleviate the national fiscal burden and promote a more rational and efficient allocation of fiscal resources. The rational use of fiscal funds is crucial to the overall development of the country. Investing limited fiscal resources in areas of greater need helps promote sustainable economic development. The China Photovoltaic Industry Association also pointed out that although adjusting export tax rebates is not the only way to fundamentally solve the problem of “internal competition,” in the long run, it is conducive to curbing the excessively rapid decline in export prices and reducing the probability of trade frictions. This is of great significance to the healthy and stable development of my country’s photovoltaic industry. Previously, the Ministry of Finance and the State Taxation Administration issued a policy in November 2024, clarifying that from December 1, 2024, the export tax rebate rate for photovoltaic silicon wafers, cells, and modules would be reduced from 13% to 9%. This further adjustment to the export tax rebate policy is also a decision made based on a comprehensive consideration of the current state of the industry and national interests. In the future, China’s photovoltaic industry needs to continuously strive in technological innovation, improving product quality and service levels to enhance its international competitiveness and better cope with market changes and challenges.