State officials in Wyoming have welcomed a move by the Chinese government to end tax rebates on soda ash production.
Former US Senator Craig Thomas (Republican, Wyoming), had been pushing China to en…
State officials in Wyoming have welcomed a move by the Chinese government to end tax rebates on soda ash production. Former US Senator Craig Thomas (Republican, Wyoming), had been pushing China to end its 13% value-added tax rebate on soda ash production before his death in June 2007. Thomas wrote to Chinese Vice Premier Wu Yi in May 2007 that the rebate allowed Chinese soda ash producers to undercut American companies on the international market by setting artificially low prices. He called on the Chinese to lower or eliminate the rebate. Officials in Beijing in the first week of July 2007 announced that they would begin eliminating or reducing tax rebates on more than 2,000 goods, including soda ash. The Wyoming congressional delegation said the move should help the state“s soda ash industry. Wyoming accounts for more than 90% of US soda ash production. In June, Senator John Barrasso was sworn in as Thomas“ replacement. “I am pleased to see that the Chinese government has taken the necessary steps to level the playing field for Wyoming soda ash”, Mr. Barrasso said. China overtook the United States in 2006 as the world“s largest soda ash producer. The country produced an estimated 13 million tons in 2006, most of it through a synthetic process, while American production was just under 11 million tons. The American Natural Soda Ash Corporation is the international marketing arm for the four Wyoming soda ash manufacturers that operate in the Green River Basin. John Andrews, president of ANSAC, said eliminating the Chinese tax rebate will help “curtail excessive capacity expansions, while at the same time preserving production” in China.