Export Tax Rebate Adjustment Should Be Solved Without Worry.

The Ministry of Finance and the State Administration of Taxation issued a notice in July 31st to raise the export tax rebate rate of some textiles and clothing from 11% to 13%.

This policy is of positive significance for textile enterprises.

However, judging from the performance of the A share market today, investors do not seem to appreciate it.

　　市場毫不領情

In today's morning, the textile industry index (399132) opened an index of 460.36 points, opened 0.33 points, and the downward trend continued until afternoon.

From 13 p.m. to around 14:15, a wave of upsurge was launched.

At that time, the State Administration of Taxation adjusted the export tax rebate, and textile index began to accelerate diving with the Shanghai and Shenzhen stock market.

At the end of the day, it closed 444.05 points, or 3.61%, higher than the 2.15% decline in the Shanghai Composite Index.

From the perspective of individual stocks, only 43 stocks rose on the A shares of the textile sector, respectively, which rose by 1.02% from A (000726) and 0.71% by Shenda (600626).

It is worth noting that, in the case of a weak market, the textile sector is strong.

Since the textile index hit a new low in June 20th, it rose by 14.22% in the 30 trading days to July 31st, while the Shanghai Composite Index rose only 0.98% during the same period.

Some analysts believe that the "change" of the textile sector at this stage or benefit from the decline in the cost of exports in the short term and the decline in oil prices.

But today's textile plates, which should have been shown by positive factors, are really hard to understand.

　　提高出口退稅意在“解圍”

Because of the economic downturn in Europe and the United States, the acceleration of RMB appreciation, the implementation of the new labor contract law, the improvement of environmental protection requirements and the increase of production costs, textile enterprises are in a predicament, and enterprises are barely enough to maintain even dare to take too many orders.

In addition, the continuous increase in interest rates by the central bank has greatly increased the financing cost of textile enterprises.

The sharp rise in the cost of electricity, freight, labor, water and so on, made the textile industry with a gross profit margin of only about 10% plunged into a "zero profit" dilemma.

Some experts point out that at present, the profit margin of 2/3 in textile industry is only 0.62%.

Customs data show that in May of that month, China exported $14 billion 430 million of textile and clothing, an increase of 9.7% over the same period last year, which is lower than the cumulative growth rate of 5.7 percentage points in 1-5 months.

Coupled with larger cost expenditure, the profits of garment export enterprises have shrunk seriously.

In 1-5 months, Guangdong's textile and clothing exports were 11 billion 510 million US dollars, down 15.7% from the same period last year, and the growth rate also dropped by 40.3%.

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

The export tax rebate rate will be adjusted by 2 percentage points, and the total profit of the textile industry will increase by 2 billion 600 million US dollars. According to the exchange rate of 6.8, the profit of enterprises will increase by 17 billion 690 million yuan.

Without considering other factors, the implementation of the 25% income tax in enterprises will increase the net profit of the textile industry by about 13 billion 229 million yuan because of the export tax rebate adjustment, which accounts for about 11.4% of the total profits of Enterprises above the textile scale in 2007.

Therefore, for the textile industry almost "Besieged", the adjustment of the export tax rebate is indeed timely.

　　難除遠慮

Although adjusting the export tax rebate is good for the textile industry, Lu Junlong, an analyst, believes that raising the export tax rebate can not fundamentally change the competitiveness of the industry, or even hinder industrial upgrading.

In the short term, some small and medium sized foreign trade enterprises will benefit from policy support, which will play a significant role in improving profits, but in the long run, they do not have the capability of sustained growth in performance.

In the past several export tax rebate rate reduction period, domestic exporters of textile and clothing can pass part of the cost of tax refund to foreign buyers through the price increase of products. It can be speculated that if the export tax rebate rate is raised, foreign importers will also ask for products to reduce prices, and enterprises can not fully realize the substantial increase in pre tax profits.

The industry's recovery must be based on industry restructuring and fundamental changes.

If the textile export industry wants to turn over, it will also need to digest the impact of policies, and start with cracking down on the plight of the industry.

This may be the reason why the textile market is not appreciated today.