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    The Ministry Of Finance Will Further Study The Flexible Use Of Sliding Tax Policy.

    2010/8/12 7:29:00 40

    Cotton Price

    Textile enterprises cost rising pressure is difficult to reduce


    In the case of rising domestic cotton prices, many textile workers have called for the adjustment of cotton import slip tax to ease the upward pressure on the cost of textile enterprises, but the Ministry of Finance recently declared that it is not appropriate to cancel the cotton import slip tax at this stage.


    Analysts pointed out that, in the case of high domestic cotton prices, maintain the existing Sliding duty Policy unchanged means cotton textile enterprises continue to rise this year, the cost of raw materials costs will not be reduced in the short term.


    The so-called sliding tax, also known as sliding tax, is an import tariff imposed on the same price of the same commodity in the import tariff according to the market price standard. This tax rate is low or no tax on the price of high-grade commodities, and the rate of low prices is high.


    In order to reduce the impact of imported cotton on the domestic market, protection Cotton grower Interests, China began to levy a sliding tax on the import quota of cotton quotas outside the tariff quota in May 2005, and the sliding rate ranges from 5% to 40%. The Levy of this tax is equivalent to setting the bottom line for the price of imported cotton and supporting the domestic cotton market price.


    However, the impact of cotton production cuts and export moratorium on exports has been rising almost every week since the beginning of last year. This year, cotton prices are constantly refreshing the historical high price in the past ten years. The data of China's cotton net show that the spot price of domestic cotton in the beginning of the year was around 14000 yuan / ton, and by July, it had climbed to 18000 yuan / ton.


    In view of the rising domestic cotton prices and increasing pressure on cotton textile enterprises, Zhao Linzhonghe, chairman of the textile group's rich run group, suggested that the cotton import slip tax should be adjusted or even abolished. However, the Ministry of Finance recently replied that there is no time to adjust the sliding tax, but will further study the flexible use of sliding tax policy.


    Dongguan Jiasun Knitting mill Lin Xiaoning, deputy general manager, told reporters that the cost of raw materials had increased a lot when the source of enterprise income had not changed much, which led to the squeezing of the profits of enterprises.


    According to Chen Ming, director of Jiaxun knitting factory, the profit margin of the textile industry has dropped to about 5%.

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