Tax Rebate And Loss Reduction, A New Way For Textile Industry

In addition, Zhou Shijian believes that it is necessary for the state to stabilize the exchange rate and even adjust the RMB to the US dollar's current exchange rate to 7.

"In 1995, the state's export rebate rate of export products decreased from 11%, 14% and 17% to 3%, 6% and 9%. In 1997, it encountered Southeast Asian financial turmoil and hit China's exports. The state raised the export tax rebate rate in 1998, which played a significant role in stabilizing foreign trade."

Zhou Shijian said, "in order to reduce the surplus, the two large-scale reduction of the export tax rebate rate in 2006 and 2007, and now the export environment has changed dramatically, the financial tsunami has swept the globe. In order to prevent the export decline, it is necessary to raise the export tax rebate rate of other products except" two high one capital "to help export enterprises to tide over the difficulties.

This adjustment makes the export tax rebate rate of textiles and clothing back to the level before the adjustment of the two rounds of export tax rebate rate in 2006 and 2007.

In 2006, the textile export tax rebate rate dropped from 13% to 11%, and the export tax rebate rate in 2007 dropped from 13% to 11%.

"In the first few months of this year, the economic downturn in the United States has weakened the demand for the US market. In recent months, Europe has been swept up by the US subprime mortgage crisis. The depreciation of the euro has been very severe. The appreciation of RMB against the euro has reached 15% to 20% in a short span of 3 months. At present, the business of Europe is basically unable to do so, and the adjustment of the tax rebate rate by the state will make some profit margins for the enterprises."

Zhou Xiaonan said.

In addition, emerging economies have also been hit one by one.

If the tax rebate rate is raised by 2 percentage points before the end of the year, the tax rebate will be 10 billion 600 million yuan for textile and garment export enterprises.

Without consideration of other factors, in the case of 25% income tax, the adjustment of export tax rebate will increase the net profit of the whole textile industry by about 8 billion yuan.

Exports of mechanical and electrical products also maintained good export value of 617 billion US dollars, an increase of 24%, accounting for 57.4% of China's total exports over the same period.

Most of the export of traditional bulk commodities dropped, including clothing and accessories exports of 87 billion 80 million US dollars, an increase of 1.8%, 21.2 percentage points lower than the same period last year (the same below); footwear exports 22 billion 80 million US dollars, an increase of 15.1%, down 1.7 percentage points.

At the 104th session of the Canton Fair, many mechanical and electrical enterprises have told reporters that buyers are generally lowering prices and exporting prospects. When taking orders, they should take account of the risk of receivables and prevent losses. They will face a further decline in profits when prices are difficult to raise. They appeal to the state to raise export tax rebate rates to help enterprises.