Tax rate increases, a timely help or stalling tactics
Ministry of Finance and State Administration of Taxation recently issued a notice to announce that since August 1 this year, since some of the textiles and clothing export tax rebate from 11% to 13%.
China Textile Industry Association spokesman Sun Huaibin said the move showed the Government's difficulties in the textile and garment export enterprises of concern and support to these enterprises ease the pressure brought about by rising costs have a positive effect.
Reporter learned from the China Textile Industry Association's latest statistics show that the country prior to June total textile and apparel exports 83.851 billion U.S. dollars, up 11.11%, an increase of 6.44% down over last year. If converted into yuan, the former textile and clothing exports in June rose only 1.6% down year on year increase of 11.6%.
These figures, and frequently heard the first half of the textile and clothing business failures and loss comparison the news, showing the difficult situation of the industry.
Export tax rebate rate of increase, a direct "free" to the relevant enterprises 2% of the profits. For many textile and clothing SMEs, is timely help for the verge of closing down a large number of export-oriented textile and garment enterprises to provide a breathing space.
At the same time, lower consumer demand in the international and domestic production costs rose, the yuan continues to appreciate such circumstances, this good is easy to dilute. "This is just one aspect of the yuan revaluation, the government gave us enough to offset the profits quickly." In a garment export company official said.
China's textile and garment enterprises has been relatively high dependence on exports. China Textile Industry Association statistics show that textile and garment exports this year, although the decline, but the first in June still accounted for the national textile and garment export value of 12.58% share, last year the proportion is 29.32%.
Figures show that the country prior to June increase in textile and apparel exports to the U.S. dollar count is only 0.65%. Weakening in international demand, while domestic inflation situation, many companies worry that the adjusted export tax rebate rate of the additional profits will be relevant to all aspects of "sharing" out. For example, operators may require price increases of raw materials, and foreign importers may cut offer.
"Although the new policy will help reduce the pressure on companies to improve industry profitability, but the troubled textile and apparel industry in a certain period of the multiple factors that difficult to change, not because of increases in the elimination of export tax rebate rate. Raised the tax rebate rate will not change the efficiency of the sector by rapid downward trend, but only slow down the speed it. "one industry source said.
The intention to reduce export tax rebate rate is the lever of the state through taxation, labor-intensive, low value-added traditional industries, the industry generally believe that this policy can only be regarded as "stalling tactics."
"Textile and garment enterprises are to truly break away from difficulties, but also rely on their own time." Sun said.
Sun Huaibin that the export environment in the current situation is grim circumstances, the enterprises should make greater efforts to intensify structural adjustment, improve bargaining power and export value-added products, improve brand awareness, changes in export growth, and improve enterprise management.
I am China Hardware Suppliers writer, reports some information about air jet loom , modal bed sheets.
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