Export Tax Rebate To Adjust The Delay Of Shuffling In Textile And Garment Industry

Brief content: since August 1st, the Ministry of Finance and the State Administration of taxation have raised the export tax rebate rate of some textiles and clothing from 11% to 13%., which indicates that this policy will bring great benefits to Zhongshan textile and garment enterprises.

He suggested that Zhongshan's export textile and garment enterprises should increase the intensity of product mix adjustment and fundamentally enhance their core competitiveness.

Since August 1st, the Ministry of Finance and the State Administration of taxation have raised the export tax rebate rate of some textiles and clothing from 11% to 13%., which indicates that this policy will bring great benefits to Zhongshan textile and garment enterprises.

However, experts and customs still remind textile enterprises not to blindly accept orders.

Callback point profit increased by 1%

Affected by factors such as the implementation of the new labor law, price rise of raw materials and appreciation of the renminbi, the textile and garment industry, the five largest traditional industry in Zhongshan, is facing unprecedented difficulties this year. The export growth rate has slowed down obviously. More and more small garment factories in Zhongshan have been pushed to the crossroads of life and death.

"The export tax rebate callback has given us the confidence to continue to do so."

Mr. Chen, a clothing company in Shaxi, said that the export of their company continued to decline this year. Now, more than 2 tax rebates will undoubtedly stimulate their confidence in placing orders.

He said that if he exports 1 million yuan of clothing now, that will increase the profit of 20 thousand yuan.

Zhongshan customs experts said that for export oriented enterprises, the export tax rebate rate callback percentage point, equivalent to 1% of the total export volume of enterprises directly increased to the profits of enterprises.

Not only that, it can also effectively reduce the competitive pressure brought about by "export to domestic sales" to the domestic market.

Foreign quotations may be lowered accordingly.

Although the export tax rebate callback is a great advantage, "but 2% can not afford to be in the difficult position of the entire textile and garment industry."

Customs experts say that in the long run, export tax rebates still need to be adjusted.

The customs staff believe that "after raising the export tax rebate rate, foreign investors are likely to lower the quoted price, so that the desire of exporting enterprises to lose profits will fail."

He suggested that when enterprises take orders, it is best to consider all kinds of factors, do not arbitrarily reduce prices, do not blindly take orders.

He suggested that Zhongshan's export textile and garment enterprises should increase the intensity of product mix adjustment and fundamentally enhance their core competitiveness.

Long term unfavorable adjustment of industrial structure

Inspection and quarantine department statistics, in the first half of this year, the value of textiles and clothing exported by the Zhongshan Bureau was valued at more than 5.1 billion US dollars.

The customs statistics are $970 million for clothing and accessories in Zhongshan.

In the second half of the year, when the export value remains unchanged, Zhongshan textile enterprises will increase profits by nearly 20 million according to the statistics of customs.

Zhongshan inspection and Quarantine Bureau official said that the export tax rebate is most favored by small and medium-sized textile and garment enterprises.

Since last year's foreign trade crisis, the industry has speeded up its shuffling, and many enterprises with low profitability have gone bankrupt. Now the tax rebate callbacks have largely alleviated the survival pressure of these enterprises, but the industry shuffling has also slowed down.

In the long run, it will not be beneficial to the adjustment of industrial structure and the acceleration of pformation and upgrading of enterprises.