China's tax cut plan for iron ore miners unlikely to slash imports

摘要

A proposed tax cut by China for its iron ore miners could lead to lower prices of the raw material, but it is unlikely to reduce imports by the world's top buyer as it does little to improve the competitiveness of domestic producers. China may also face strong opposition to the plan to drop the total tax rate for local iron ore miners to 10-15 percent from 25 percent because of the potential revenue loss for local governments, industry officials and analysts say.