Quotations for newly-signed export contracts for ceramics from Foshan, Guangdong province – China’s largest ceramics production base – have increased between 15% and 20% following the introduction of a new export tax rebate policy on July 1, the Guangzhou Daily reported. According to the Ceramics Association of Foshan, ceramic glaze prices also rose, up between 20% and 30%. “Foshan’s ceramics industry accounts for 25% to 30% of the world market,” said Yin Hong, the association's secretary. “Unfortunately, ceramics production is high in inputs, energy and pollution but low in productivity, which makes the industry one of the victims of the rebate cut policy.” The export tax rebate for ceramics has been lowered four times since 1985, and following the latest cut it sits at just 5%. The rate for ceramic glaze, a compulsory raw material, has been slashed from 13% to zero. The government’s new export rebate policy has been criticized for failing to provide a transitional period. “This is like a dagger in the throat of Foshan’s ceramics sector, which had been rapidly expanding over recent years,” a Foshan government official told the newspaper.