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    One Export Tax Rebate Rumours Made Domestic Textile Industry A Terrified Bird.

    2011/5/19 9:50:00 39

    Export Tax Rebate Textile Industry

    In the appreciation of the renminbi,

    Labor cost

    Under the pressure of rising and credit crunch,

    textile industry

    Has become a frightened bird.

    On the 16 day, the market suddenly heard rumors that the relevant departments of the state have decided to reduce the textile export tax rebate from 16% to 11%.

    It is expected to be formally launched in 6-7.

    China Chemical Fiber Association Zheng secretary general said, because the export tax rebate reduction needs relevant government departments final notification, but does not exclude exports.

    drawback

    From 16% to 11%.

    Once realized, it will affect the related small and medium scale to a large extent.

    enterprise


    Judging from past experience,

    Textile export

    The tax rebate may be lowered in July.

    But there is little chance of a one-time reduction of 5 percentage points.

    Because many textile SMEs export gross profit margin is only 1-2 percentage points.

    Once the export tax rebate is reduced to 11%, many of them will lose money or even close down.

    Large and medium-sized exporters need to see bargaining power. If the export proportion is above 40%-50%, there will be a certain risk.

    In contrast, clothing and domestic companies with channels and brands will be less affected.

    Judging from the current situation, the indicators of the textile industry are decreasing.

    The export situation is still grim in the second half of this year.


    Fu Shi securities (002083) securities affairs representative said that the export tax rebate rate reduction will reduce the profits of enterprises, but this is a national policy, the company should not deal with many ways, and it is not good, so improve product prices, because fear of the loss of orders.

    However, it is estimated that the export tax rebate rate will be reduced to 11% at a low rate.

    In our view, there is no reason for long-term subsidies to rely on export tax rebates to survive in textile enterprises. China needs more competitive enterprises and foreign customers.

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