Baotou taxation bureau supports key local steel company

The Baotou taxation bureau recently extended a valuable helping hand to a key industrial concern in North China’s Inner Mongolia autonomous region – allowing export tax rebates of 900 million yuan ($127.25 million) for Inner Mongolia Baogang Steel Union Co, according to local officials.

They said the bureau did it through paperless declarations and submissions of electronic data, as well as contactless audits – in line with relevant tax policy regulations rolled out during the novel coronavirus epidemic period.

The initiative involved total export tax rebates on revenue of $1.1 billion for the period.

Inner Mongolia Baogang Steel Union Co is an important steel export company and employer, based in Inner Mongolia autonomous region.

Since the COVID-19 outbreak, steel demand has come under pressure and the sales volume of the company has decreased year-on-year, while the capital flow of the group has been tight, officials said.

The taxation bureau learned about the difficulties -- paying close attention to the production, operations and financial situation of Baotou Steel Union -- and took the export tax rebate policy as a starting point to help it overcome its challenges.

To reduce the financial pressures, the taxation bureau opened a fast track channel to quickly report back to the higher authorities on the status of the enterprise’s declarations -- and it aimed to secure full tax refunds, officials said.

A total of 215 million yuan was returned to the company in March and 700 million yuan in April, they said.