Textile Export Tax Rebate Policy Needs Stability

Recently, it was reported that the state plans to adjust the export tax rebate rate of "two high and one capital" (high energy consumption, high pollution and resource) products, and impose export restrictions on industries with large energy consumption and heavy pollution, such as steel, metallurgy and resource industries. The fuse is a sharp increase in steel export volume in April.

On this year's "Spring Fair", textile and other export enterprises have said that they are most concerned about the stability of the "two rate", in addition to the RMB exchange rate, the other is the export tax rebate rate.

Some analysts believe that although China's exports are recovering faster this year, the outlook is still unstable.

The Ministry of commerce also said in public that the stability of export policy will be maintained this year.

We might as well review the adjustment of textile and garment export tax rebate policy in recent one or two years.

In the early sense of the severe impact of the global financial crisis, in order to maintain the steady development of the textile industry, the country raised the export rebate rate of textile and garment products 4 times from August 2008 to April 2009, and gradually raised it from 11% to 13%, 14%, 15% and 16%.

In February 4, 2009, the Executive Council of the State Council deliberated and adopted the plan for adjustment and revitalization of textile industry and equipment manufacturing industry in principle.

The meeting made clear a series of principles and policies to speed up the revitalization of the textile industry, focusing on independent innovation, technological pformation, eliminating backward and optimizing layout, promoting structural adjustment and industrial upgrading, and increasing fiscal, taxation and financial support.

The meeting decided to increase the export rebate rate of textile and clothing by one percentage point, from 14% to 15%.

This will play a crucial role in further increasing support for small and medium-sized textile enterprises, lightening the burden on enterprises and coping with the international financial crisis.

In April 1st of the same year, the state finance ministry and the State Administration of Taxation increased the export tax rebate rate of textile, light industry and other industries.

Among them, the export rebate rate of textiles and clothing has been raised to 16%, but it has not reached the highest level of 17%.

It is undeniable that the pulling effect of exports on China's economic growth is still indispensable.

As a large exporters of foreign exchange, the textile and garment industry shoulders the important responsibility of ensuring growth, promoting domestic sales and helping to maintain stability.

Moreover, from the perspective of enterprises, a large number of export oriented enterprises can not turn to the domestic market in the short term.

The closure of export enterprises will directly lead to a large number of workers losing their jobs. After all, the functions of the textile and garment industry to absorb large quantities of labor force will be irreplaceable at least in the next 5~10 years.

Therefore, the importance and importance of several measures to raise the export tax rebate rate is self-evident.

In fact, the implementation of the policy of raising the export rebate rate has received some expected results.

Since the negative growth of textile exports in November 2009, the net export value of textiles has steadily increased in the first 4 months of this year.

According to customs statistics, the total export volume of textiles in China reached US $10 billion 159 million in the first two months of this year, exceeding the level of the same period in 2008 (US $9 billion 463 million), and the export volume of textiles has been restored to the level of 2008 in the light of factors such as product prices.

However, it is worth noting that although the global economy is recovering from the post crisis era, there is still a big gap between the textile and garment industry and the overall recovery, and enterprises are still facing many challenges.

At present, stabilizing export tax rebate policy is very important for the textile industry.

Only by ensuring that textile and garment exports continue to develop well can we maintain the stable and healthy development of the textile industry.