Export Tax Rebate Reduced By &Nbsp; Textile Fabric Enterprises "Had To" Raise Prices.

In order to achieve

The reporter interviewed some exhibitors and asked them to respond to the export tax rebate reduction. The answer is the same: it is difficult to accept.

After the two sessions in 2011, the state will further spread the news of the export tax rebate reduction in the "high pollution, high energy consumption and resource" industries, which involves textile exports.

In 2010, the total export volume of textiles in China amounted to US $77 billion 51 million, and the export tax rebate was about 78 billion 500 million yuan, fluctuating by one percentage point, which was related to the textile industry's profit of about 5 billion 200 million yuan.

Reporters visited the seventeenth China international textile fabrics and accessories (Chun Xia) fair and the Eighth China International Textile yarn (Chun Xia) exhibition not long ago.

Order reduction

Gu Jianan of Shaoxing fris Industrial Co., Ltd. has heard about the possible reduction of the export tax rebate. He told the newspaper reporter: "if the state wants to lower the export tax rebate rate, our enterprises will have to raise their prices."

The export tax rebate is mainly to balance the tax burden of domestic products by returning the domestic tax paid to export goods, so that domestic products can enter the international market at the cost without tax, and compete with foreign products under the same conditions, so as to enhance their competitiveness and expand export earnings.

Since the implementation of the export tax rebate policy in 1985, to the end of February 2006, China's foreign exchange reserves have surpassed Japan, ranking first in the world, and surpassed Germany in 2009 to become the world's largest exporter.

In 2010, China's export tax rebate amounted to 730 billion yuan, while China's trade surplus last year was US $183 billion 100 million, which means that the gap between export tax rebate and trade surplus is narrowing.

Such a situation is closely related to the current inflation situation in China. For this reason, some scholars have proposed the proposal of phasing out or reducing the export tax rebate.

However, at present, the export tax rebate rate of the domestic textile industry is 13%-16%, while most textile enterprises do not exceed 5% profit margins.

If the export tax rebate is lowered, the profits of the enterprises will decrease significantly.

Gu Jianan said: "nowadays, enterprises are facing serious difficulties in rising prices of raw materials.

We mainly produce linen fabrics, and 80% of our raw materials are imported from abroad.

Although flax consumption is now off season, prices are still rising.

Foreign merchants are getting more and more difficult to accept the rising prices of domestic products, so that our products can rise in domestic prices but not in foreign trade.

In this way, we must not accept foreign orders. "

Huang Guofang, marketing manager of Guangzhou Kang Textile Garments Co., Ltd., told our reporter that at present, the domestic textile consumption ability is low, compared with last year, clothing brands have fewer orders for 1/3-1/2.

An important reason is the rising fabric prices. "Like us, the middle level denim last year was 15 yuan per meter, the same product this year, the price is 22 yuan per meter.

Even if it has gone up so much, the profit is only 3%-5%. "

Textile exports encountered price ceilings, while domestic sales decreased year-on-year, and textile fabric enterprises were in an awkward position.

Before and after the Spring Festival, some of the European and American orders came to Vietnam and other Southeast Asian countries because of the high price of Chinese textiles.

At the Beijing spring yarn exhibition in 2011, an agent from Vietnam told our reporter that the price of Chinese yarn is still at the lowest level in the world. The labor cost of Vietnam will be lower than that of China, but the actual price difference of products is very small.

Meng Yunyan, general manager of Shaoxing Bei Hong Textile Co., Ltd., said: "the price of domestic fabrics is still very affordable internationally, and foreigners can actually accept price increases.

Only domestic fabrics are sold abroad, and have to go through layers of middlemen. Each middleman should ensure their bottom line.

For example, I earn 10 cents per metre fabric, and middlemen earn 50 cents to 1 dollars.

So the actual situation is that our enterprises want to raise prices, but middlemen do not buy them.

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pros and cons analysis

The export tax rebate policy has been implemented for more than 20 years, and it has significant effect on boosting the volume of China's foreign trade and enhancing the export price competitiveness.

The long-term implementation of this policy, in the view of some scholars, has also had some negative effects on China's economic structure.

On the one hand, the dependence of our foreign trade on foreign trade is more than 60%, and the fluctuation of the world economic environment has a significant impact on the domestic economic development and employment. Since the international financial crisis, the coastal foreign trade processing enterprises can not do it alone, and the phenomenon of closing the factory can be clearly felt, and this will make our enterprises in the passive situation.

On the other hand, the main profits of many export enterprises come from export tax rebates, which indicates that these enterprises are not competitive enough.

For this, Huang Guofang told reporters: "indeed, many fabric enterprises rely on export tax rebates in foreign trade to survive, and take advantage of loopholes in the policy to defraud more tax rebates."

The state sets up protective umbrella for the export of enterprises, which makes enterprises have no incentive to improve their own profitability and product competitiveness.

Financial subsidies affect the market competition, so that enterprises with backward production capacity can survive in the market, resulting in unreasonable allocation of resources.

In March 7, 2011, during the press conference held on the "fiscal policy and related issues" held by the National People's Congress, Xie Xuren, Minister of finance, said: "in 2011, we will continue to apply the policies and measures related to export tax rebates, further support the adjustment and optimization of the structure of export products, continue to promote the export of mechanical and electrical products and products with superior characteristics. At the same time, we must strictly control the export of products such as high energy consumption and high pollution through the use of tax policies."

"Phasing out the export tax rebate policy will help curb the export of low-end products, speed up the elimination of backward production capacity, speed up the adjustment of industrial structure, and promote energy conservation and emission reduction.

Moreover, the savings tax will be used in the construction of infrastructure for domestic logistics channels, and the pformation of external demand into domestic demand will be conducive to structural adjustment and scientific development.

Some analysts said.

Looking at recent years' data, we can see that the state has been adjusting the foreign trade with the lever of export tax rebate according to the change of economic form.

In January this year, the export tax rebate for chemical fiber products increased by two percentage points.

In August 1st last year, the export rebate rate of some textiles and clothing increased from 11% to 13%.

In September 2006 and July 2007, the state has cut down the export tax rebate rate for two times, and the export tax rebate has been changing.

Li Rucheng, President of the National People's Congress and President of YOUNGOR group, said during the two sessions that last year, mainland enterprises had just passed through the difficulties of the international financial crisis, coupled with high pressures such as high inflation and rising prices of raw materials, and enterprises hoped that export tax rebates would continue to be stable.

In a word, if the export tax rebate is cut down, the survival of textile enterprises will be even more difficult.