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Measures To Increase Growth And Raise Tax Rebate Rate

2008/11/5 9:04:00 28

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Guaranteed Growth Tax Rebate Rate Textile Industry

Although the data released show that China's fiscal revenue growth has suddenly declined in the three quarter, the determination to "maintain growth" has prompted a positive response to the fiscal policy.

Yesterday, the Ministry of Finance and the State Administration of Taxation issued the circular on raising the export tax rebate rate for some commodities. The export tax rebate rate will be raised again from November 1st.

This round of adjustment will cover export tax rebate rates for labour intensive commodities such as textiles, clothing and toys, as well as high technology and high added value commodities, involving a total of 3486 commodities.

Adjustment involves more

In the context of severe export situation since last year, this is the second time this year that China has raised the export tax rebate rate.

Compared with the increase in the export rebate rate of textiles and clothing industry in August 1st, the adjustment of this round involves a broader industry.

The export tax rebate rate increase involves 3486 kinds of commodities, accounting for about 25.8% of the total export commodities.

Analysts believe that the scale and scope of the adjustment reflects the decision makers' concerns about the deterioration of the export situation.

Specifically, the Ministry of Finance and the State Administration of Taxation Circular shows that for labor intensive industries, the export tax rebate rate of some textiles and clothing has been raised from 13% to 14%; the export tax rebate rate for daily and artistic ceramics has increased to 11%; the export tax rebate rate of some plastic products has increased to 9%, and the export rebate rate of some furniture has increased to 11% and 13% respectively.

For the export of high technology and high added value commodities, the notice said that the export tax rebate rate of AIDS drugs, gene recombinant human insulin lyophilized powder, Huang Jiaoyuan, toughened safety glass, capacitor tantalum wire, marine anchor chain, sewing machine, fan, CNC machine tool carbide tool and other commodities increased to 9%, 11% and 13% respectively.

Yu Nanping, a researcher at the Asia Europe Economic Research Institute of East China Normal University, told reporters that in fact, under the circumstances of the global financial crisis, the regulation of monetary policy will become more cautious and fiscal policy will play a more active role.

At the same time, the owners of small and medium sized enterprises also indicated that preferential taxation is the most urgent and practical good policy at the moment.

Specific stimulus effect to be observed

It is no doubt that the export tax rebate rate is rising again for the relevant industries.

But many people in the industry say that the current round of regulation and control actually has much stimulus effect and remains to be seen.

For the textile and garment industry, the export rebate rate of textile and garment in August 1st was raised from 11% to 13%, and this raised to 14%, making the export rebate rate of textile and garment back to the level before the two large-scale adjustment in 2006 and 2007.

Many people in charge of textile enterprises agreed in an interview with reporters that great profits can help reduce losses, but this year's 3% increase in export tax rebate rate can not really reverse the grim situation.

For the electromechanical industry, the current round of adjustment did not meet its expectations.

Prior to the Ministry of Commerce import and Export Chamber of Commerce submitted to the Ministry of Commerce's research report, it is hoped that the export tax rebate rate of electromechanical products can be fully raised by 4%~8%, basically achieving 17% of the full tax rebate rate.

In addition, the economic environment of the main export areas of the Mechatronics Industry and Europe and the United States has also decided that the current situation will continue to be grim.

In response, Li Jian, a researcher at the Ministry of Commerce of the Chinese Ministry of foreign trade research, said that the current export tax rebate rate increase and other measures can only reduce the loss of enterprises and maintain a certain increase in export. It is impossible to completely alleviate the impact of external economic weakening. The key is to look at external demand.