Wang Jinliang, the vice-chairman of China Battery Industry Association, said that recently the five ministries and commissions have been discussing on drawing concrete plans, with China's Ministry of Industry and Information Technology taking the lead. In view of the status quo of lead-acid battery industry, the ministry prefers charging no or little consumption tax, which is undoubtedly good news for the entire industry.

During the discussion, the issue of 5% consumption tax on lead battery triggers another heated discussion among delegates. Zhou Zhaoxue, the chief director of Chaowei Power Source Limited Company in Zhejiang Province said that last year saw the operation of the majority of enterprises near or below the cost line.The price wars they experienced caused grave harms to the industry. Once the consumption tax is imposed, the cost of enterprises will certainly increase and there will be a reshuffle within the industry, which is detrimental to the survival of enterprises and the healthy development of the industry. It is hoped that the state may impose consumption tax after the industry embarks on a sound path of development.

Hong Yu, vice president of the International Technology Limited Company, said that the imposition of consumption tax would not necessarily meet the demand of environmental protection, but would absolutely cause serious harm to the export of the industry.

ZhengHaidong, president of the Changguang Power Supply in Wuhan said that consumption tax would affect enterprises oriented to export most severely. The enterprises in Vietnam, Indonesia and India are not only exempt from taxation, but receive tax rebate. Taxing will make the export enterprises in China less competitive. Once the consumption tax is imposed,enterprises could possibly consider moving overseas.