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Tax Pressure On Cotton Textile Industry Profits, Textile Industry Hopes To Introduce More Support Policies

2008/8/20 16:52:00 26

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Support Policy Tax For Cotton Textile Industry

Recently, the state has issued a policy of raising the textile export tax rebate by 2%. Insiders believe that the tax rebate increase indicates that the state still supports exports of labor-intensive products, and a series of supporting policies may be introduced in the second half of the year.

Among them, the industry most wants to adjust the cotton purchase and processing value-added tax "high tax and low deduction" policy.

　　稅收壓薄棉紡業(yè)利潤(rùn)

According to the current VAT system (implemented in 1994), the input tax rate of cotton textile enterprises in China (general taxpayer) is 13%, and the product sales tax rate is 17%. This means that even if the cotton textile enterprises do not realize the value added, they will sell the cotton purchased at the original price and bear the same tax, that is, the so-called "high tax and low deduction" policy.

The first textile network editor in chief Wang Cheng analysis said that the "high tax and low deduction" of value-added tax has a great impact on cotton spinning enterprises. Cotton textile enterprises main raw materials are cotton, and the cost of cotton accounts for about 70% of the total cost of production.

Taking a large state-owned cotton spinning enterprise with an annual cotton consumption of 50 thousand tons as an example, 1 tons of raw cotton are calculated at an average price of 13600 yuan. The total annual purchase cost of cotton is about 680 million yuan, and the input tax rate is 78 million 230 thousand yuan at 13% tax rate, and if the 17% tax rate is calculated, the input tax is 98 million 800 thousand yuan, with a price difference of 20 million 570 thousand yuan.

This is obviously a very small expense for the enterprises that belong to the small profit industry.

In addition, the advanced air-jet looms and automatic winder used by cotton textile enterprises have abolished the import value-added tax reduction policy since the second half of 2007, and the cost of technical pformation has increased by 17%, slowing down the pace of technological progress and industrial upgrading.

According to people close to the national development and Reform Commission, the "two machine" import value-added tax issue may also be adjusted.