Tax Rebate Is Expected To Increase Annual Profit For Textile Industry. Leather Products Are Not Involved.

The Ministry of Finance and the State Administration of Taxation issued a notice recently announcing that the export rebate rate of some textiles and pesticide products should be adjusted from August 1, 2008.

According to the notice, the export rebate rate of some textiles and garments increased from 11% to 13% since August 1st, and the export tax rebate rate of some bamboo products increased to 11%.

Cancel the export tax rebate for Korean pine nuts, some pesticide products, some organic arsine products, paclitaxel and its products, rosin, silver, zinc zero, some coating products, some battery products and carbon anode.

In this regard, Wang Qian, editor in chief of the first textile network, said that the export rebate rate increased by one percentage point every time, which is equivalent to directly increasing the total export volume of enterprises to 1% of the profits of enterprises. For export oriented enterprises, the positive effect of the increase in the export tax rebate rate is direct and rapid.

Total profits will increase by more than ten billion.

Statistics show that the total export volume of domestic textile and apparel in 2007 amounted to 167 billion 900 million US dollars, of which 70% of general trade accounted for 70%. According to the annual export growth of 10%, the total export volume of textiles and clothing could reach US $184 billion 700 million in 2008, of which the total export volume of general trade mode could reach US $130 billion.

The export tax rebate rate will increase by 2 percentage points, and the total profit of the textile industry will increase by 2 billion 600 million US dollars. According to the current exchange rate level, the profit of enterprises will increase by 17 billion 690 million yuan.

In the past five years, the total profit and sales revenue of textile industry have maintained two digit growth. In 2006 and 2007, total profit and operating income increased by more than 20%.

Before 2008, May, the total profit of textile industry increased by 8.37%, and sales revenue increased by 17.38%. According to the annual growth rate of 10%, the sales revenue of textile industry will reach 32143 billion yuan in 2008.

The total profit will reach 127 billion 600 million yuan.

The increase of export tax rebate rate will account for 14% of the total profit of the textile industry, and the profit margin will increase by 0.6 percentage points.

Qu Zhihang, senior analyst at Ping An Securities, said that the increase in textile and clothing export tax rebates will increase the total profit of 2 billion 586 million -42.74 billion dollars, or about 18 billion 100 million -299 billion yuan.

Qu Zhihang said, "since the domestic financial data for the whole year of 2007 have not been disclosed, we can only get the total profit of the textile and garment industry in the first 11 months of 2007. The total profit is 106 billion 340 million yuan, and the total annual profit in 2007 is 116 billion yuan. Then the textile and garment industry will raise the export tax rebate rate, the total profit will increase by 15%-25%, and the net income will be increased by 11.25%-18.75% after deducting 25% of the comprehensive income tax.

This is a great advantage for our increasingly difficult export textile industry. "

    部分“兩高一資”產(chǎn)品不調(diào)

The export tax rebate rate adjustment range includes silk, woolen textiles, hemp textiles, chemical long and long thread, floc, felt, non-woven fabrics, knitted garments, woven garments and accessories, knitted fabrics and accessories, and some other textile fabrics.

Textiles that are not covered by this adjustment include leather and leather products, saddle and harness, fur and artificial fur and their products, cotton sewing thread, dyed, dyed, printed polyester cotton blended fabric, other blended cotton fabrics, viscose filament yarn, viscose staple fiber and its fabrics, ground textiles, special fabric lace, viscose fiber high strength yarn cord fabric, footwear and leg protectors, cap and its parts, sewing machines and their accessories, bedding and so on.

Wang Qianjin believes that the average increase in the export tax rebate rate is about 2%, which is similar to that of the previous textile related products. However, for some of the "two high one capital" products, the level of tax rebate has been maintained last year.

Shen Minggao, chief economist of Citibank (China) Limited, said yesterday that from the point of view of the target of adjustment, the focus is on the downstream knitting and garment industry.

The list released by the State Administration of Taxation shows that the adjustment contains all the tax numbers related to clothing related products. It can be considered that all garment exporters can enjoy the benefits of this policy adjustment.

In addition, the export rebates of some upstream and middle products such as cotton yarn and chemical fiber have also been raised on the same scale.

The adjustment of the tax refund policy for downstream products will help increase exports, ease the contradiction between insufficient demand in the upstream and middle reaches, and indirectly support the development of the upstream and downstream industries.