Can The Export Tax Rebate Rate Raise The Fate Of Shanxi'S Textile Industry?

In July 31st, the Ministry of Finance and the State Administration of Taxation issued the notice on adjusting the export rebate rate of some textiles and garments.

The notice clearly pointed out that since August 1st, the export tax rebate rate of some textiles and garments has increased from 11% to 13%.

According to the reporter's understanding, the export tax rebate rate adjustment range is very large, covering the vast majority of silk and wool textiles and other textile and clothing products.

The increase of export tax rebate rate is undoubtedly a good news for export textile enterprises. So will the export of textile industry in our province change?

For the first time in two years

News of the export rebate rate of some textiles and garments in China has increased by two percentage points since August 1st. Once the news came out, reporters immediately went to Taiyuan customs for an interview and learned that the export tax rebate rate adjustment was the first increase in the past two years.

Zhang Yongchen, a staff member of Taiyuan customs, said that since 2006, the state has lowered the export tax rebate rate for two times.

In September 2006, the export tax rebate rate adjustment covers more than 10 main sub sectors, including cotton spinning, chemical fiber, silk, wool spinning and knitting, including some textile chemical fiber raw materials and yarn, fabrics and textile finished products, and the export tax rebate rate is reduced by two percentage points.

In July 2007, in order to adjust the structure of export commodities, change the mode of economic growth and curb the excessive trade surplus, the export rebate rate of garments and viscose products decreased by 2 and 6 percentage points respectively.

However, since the beginning of this year, China's textile industry has been faced with great difficulties due to the weakness of the global economy, the acceleration of RMB appreciation and the rising cost. The export tax rebate callback is a concrete implementation policy of the state to support the textile industry.

Textile industry in Shanxi is on the decline

"Textile export tax rebate rate increased by two percentage points for the current export situation of Shanxi textile industry, how big the role remains to be verified."

As for the export tax rebate rate increase, director Zhang of Shanxi textile industry management office said.

According to statistics, in the 1~6 month of this year, the export volume of textiles in our province was US $about 30000000, which is only a small figure compared with the total export volume of US $7 billion 438 million.

In 2007, the total export volume of textiles in our province amounted to 95 million 220 thousand US dollars, accounting for only about 1.5% of the total export value of the province.

However, in the 80s of last century, textile exports in our province accounted for about 15% of the total value of exports.

For this situation, the reporter interviewed Wen Tailong, an investigator of the Shanxi Provincial Department of Commerce, who is now a research and development department. He said: "China's textile industry is a traditional dominant industry, but in Shanxi, the development of this industry in recent years has to be described by the word" sunset. "

Speaking of the recession of Shanxi's textile industry, Zhang Shifu of the former Shanxi textile factory told reporters: "I entered the factory at the age of 26. At that time, the factory had a good profit, and cloth had no place to put it. The monthly salary was more than 80 yuan.

At that time, there were indicators to go to government agencies.

But after entering the 1990s, enterprises began to go downhill, wages can not be paid on time, many people are facing the pressure of laid-off and re employment, the former glory no longer exists, the days began to be bad.

Improving export tax rebate rate has limited effect

Turning to the embarrassing situation of textile exports in Shanxi, Wen said that this has great bearing on the development of Shanxi's industrial structure in recent years.

Shanxi is not the main producing area of textile raw materials. Because of its natural advantages of abundant coal resources, private capital is concentrated in coal, coking and ironmaking industries.

These industries are lucrative, while the textile industry is a labor-intensive industry. The raw material consumption is large, the equipment requirements are high, the investment is large, and the rate of return is relatively slow. These factors are not conducive to the development of the textile industry, and the export is also limited.

The news of the textile export tax rebate rate rises, and the authority of the national textile industry has analyzed this. "Textile export tax rebate rate callback percentage point, equivalent to 1% of the total export volume of enterprises directly increased to the profits of enterprises.

For export oriented enterprises, the positive effect of the callback rate of export rebates is direct and rapid.

Taiyuan City Sun Shen Industrial Development Co., Ltd., formerly known as the Taiyuan Sweater Mill, was founded in February 1995. The company mainly produces cashmere sweaters, and its products are mainly exported to Europe and America and Singapore in Asia, except for domestic sales. The annual export volume is about 9 million dollars.

"The export tax rebate rate is high for our textile exporters, but its role is limited," said Ms. Wang, who is responsible for the business.

At present, the difficulties faced by textile export enterprises are not only reflected in the export tax rebate rate, labor force appreciation, raw material price rise, and RMB appreciation, all these make textile export enterprises struggling.

The textile export tax rebate rate increases, to a certain extent, though offset the loss of profits caused by the appreciation of the textile export enterprises, but it can not fundamentally solve the problem.

Now it can only be said that this gives textile exporters a chance to breathe.

In response, Wen Tailong introduced, "the state's introduction of the textile export tax rebate rate increase policy is mainly based on the current domestic and international economic situation adjustment, to a considerable extent, in order to stimulate textile exports.

Although the impact is limited, it is undoubtedly an encouragement and help for enterprises. It is not difficult to see that the state should support the textile industry.

According to industry analysis, the export tax rebate rate callback may be the first step for the state to support the textile industry. It is expected that there will be some policies in the second half of this year.