Textile And Clothing Tax Rebate Rate Up 2%, Textile Enterprises Are Expected To Cross The Line Of Life And Death

The Ministry of Finance and the State Administration of Taxation recently issued a notice on raising the tax rebate rate of textile exports, and the export tax rebate rate of some textiles and clothing increased from 11% to 13%.

The industry believes that this adjustment can ease the plight of the textile industry.

This year, the textile industry has been troubled by the appreciation of the renminbi, the price of raw materials and the rise in labor costs.

The profit margin of textile industry has declined sharply, and some enterprises have fallen into losses or even failed.

Statistics show that this year, Jiangsu, Zhejiang, Shandong, Guangdong, Fujian, Hebei 6 of the 2/3 textile enterprises profit margins of only 0.62%.

Of the 12 large listed textile enterprises, 9 companies appeared to have seen a decline in gross profit margin. The first time this year, the investment in the cotton textile industry also showed negative growth for the first time.

Customs statistics show that apparel exports in the textile industry have slowed down for five consecutive months.

One of the important reasons why the textile industry is particularly concerned is that the industry involved about 20 million Chinese workers.

At present, there are more than 80 thousand textile enterprises in the mainland, of which more than 66 thousand are small and medium-sized enterprises.

These labor-intensive enterprises provide jobs for about 13000000 migrant workers.

The export tax rebate increased by two percentage points, which means that the struggling textile enterprises can increase profit margins by 1 to 2 percentage points.

"Do not underestimate the profit margin of these one or two percentage points. For some enterprises, it may be the line of life and death."

The head of a trading company said.

According to statistics, the export tax rebate rate increased by two percentage points, according to the 6.8 to 1 RMB exchange rate conversion, corporate profits will increase by about 10000000000 yuan.

This accounts for about 10% of the total profits of textile enterprises above Designated Size in 2007.

However, some experts pointed out that although this measure is helpful to export oriented enterprises, the domestic textile and garment enterprises are not very beneficial.

Research shows that the difficulty of financing under the tight credit situation is the main problem facing domestic enterprises.