Rock Wool Tax Rebate Policy to Phase Out to Zero by 2026, Industry Enters “Post-Subsidy Era”

Core Update:
According to authoritative sources, the current value-added tax (VAT) immediate rebate policy for rock wool products (currently at a 9% rebate rate) will be officially terminated in April 2026, with the rebate rate adjusted to 0%. This marks the end of an industrial support policy that has been in place for over a decade. The rock wool industry will now fully transition away from tax incentives and enter a “post-subsidy era,” relying solely on market competitiveness and product performance.

In-Depth Analysis of Policy Impact

1. Direct Cost Impact:

   • Based on current market prices, the cancellation of the tax rebate will directly increase the explicit production costs for rock wool manufacturers by approximately 8–10%.

   • Small and medium-sized enterprises lacking the ability to pass on costs will face severe profit margin compression, accelerating industry consolidation.

2. Shift in Technology Investment Logic:

   • The economic viability of technological upgrades previously undertaken to meet rebate standards (e.g., waste material utilization ratios) will need to be re-evaluated.

Investment focus will shift from “meeting rebate thresholds” to “enhancing performance premiums” and “reducing absolute production costs.”

Warnings and Opportunities for the Industry Chain

Warning: The phase-out of the policy is not an isolated event. It signals that the state’s support for the building materials industry is shifting from “universal subsidies” to targeted incentives for “front-runners” (such as special subsidies for ultra-low-energy building projects). Enterprises that rely solely on policy support for survival will face existential risks.

Opportunity: This also represents an opportunity for the industry to transition from “unregulated growth” to “maturity and strength.” Future competitiveness will truly be reflected in the energy cost savings for end customers, enhanced safety levels, and reduced carbon emissions over the entire lifecycle. The value of rock wool must be redefined and measured through these dimensions.