Textile And Garment Export Tax Rebate Adjustment &Nbsp; Advantages And Disadvantages?

Opposite side: tax rebate enhances international competitiveness

Saw the first quarter production Sale After the report, Jinjiang Huafeng weaving printing and dyeing Lin Fengshan, the head of the foreign trade department of the industrial and Commercial Co., Ltd., was quite impressed by the fact that even though he had been working with IKEA for many years, he felt more and more laborious. "Because there are so many competitors, many suppliers from other countries have competed for IKEA this year. Order Most of them are suppliers of Southeast Asia and other Southeast Asian countries. "

Not only Huafeng met with competitors from Southeast Asian countries, but many exhibitors also speculated that this year's decline was mainly due to the transfer to Southeast Asian countries for procurement.

"These countries have lower labor costs and lower prices. Now our domestic enterprises have to raise their prices because of the high cost of the whole industry, and their competitive advantage is more and more obvious. In fact, well qualified international buyers know well about China's export tax rebate policy, and enterprises basically give profits to them in order to improve their price advantage. If the tax rebate is cut at this time, the price of products will be raised, and our domestic enterprises will be even less competitive. Lin Fengshan believes that although most enterprises have not eaten much "tax rebate cake", this cake helps to help Chinese textile and garment export enterprises attract international buyers.

According to the rumor, the more than 100 tariff codes of clothing commodities may be included in the new round of tax rebate reduction, and the rate of reduction has been as high as 5 percentage points. Once it is established, the tax rebate rate of clothing will drop from the current 16% to 11%. In this regard, Wang Qian, chief analyst of the first textile network, gave a set of data analysis when interviewed by the media. In 2010, the tax rebate for China's textile and clothing exports reached 210 billion yuan, accounting for 28.8% of the total export tax rebates in China. A simple calculation, the tax rebate reduced 5 points, textile and clothing export tax rebate reduced by about 65 billion yuan, equivalent to the textile industry's profit 1/3. "If rumors come true, they will cause heavy losses to garment exports in the short term."

An industry analyst in Quanzhou's export enterprises analyzed that if the tax rebate was cut down, it would have a fatal blow to many low profit small and medium-sized textile and garment export enterprises. According to the industry sources, the gross profit margin of its company is about 5%, which is already in the industry's upper level. "If the tax rebate is reduced by 5 percentage points, it will be difficult for us to bear. Besides, our customers are quite good, and their products are diversified. They have certain bargaining power. For a single product company, it is estimated that the customers are running out and will go bankrupt. "

The analysis of these people has been recognized by many export enterprises including Zhongtian garment Weaving Co., Ltd.

"According to the adjustment direction of the industrial policy of the country, the tax rebate reduction is inevitable in the long run. But in this period of time, enterprises are facing pressure from all sides, and it is estimated that they will not be able to bear it, hoping to give enterprises a buffer period in the short term. Raymond Lam Hill said.

National statistics show that China's exports grew strongly last year, and the annual export growth rate reached 31.3%. Even the most neglected textile and clothing at the beginning of last year, after a series of twists and turns, has reached a 23% growth rate. In the first quarter of this year, it increased to 24% again.

However, the foreign trade situation, which is hidden behind the beautiful growth figures, is not very optimistic. At this Canton Fair, the bustling scene did not bring happiness to export enterprises. On the contrary, under the pressure of huge cost, the survival of many SMEs is worrying.

"Take our company as an example, the product is single, the profit margin is thin, the short list is the main ones. These three decisions make it difficult for us to bear the pressure of tax rebate reduction. At present, the company is also working hard to innovate products, expand product range, and contact new customers, but it will take a while before it will be effective. Xue Mocai, chief designer of Zhongtian garment marketing, mainly produces underwear.

"Even if the adjustment is not too large, it is suggested that the adjustment range should be controlled between 1 and 2 percentage points in the year to maintain a relatively stable export environment as far as possible." The insiders of Quanzhou export enterprises suggest that textile and clothing industry still has pressure to maintain growth in the short term.

Support side: tax rebate raises enterprise development inertia

The excessive dependence of small and medium-sized textile and garment export enterprises on tax rebates has made Jinjiang's economic departments concerned.

The development of China's export tax rebate policy has gradually deviated from the neutral track. The excessive support for foreign trade enterprises played a counterproductive role, resulting in some low level export products without competitive advantages relying on tax rebates to survive. This not only reduced the original intention of promoting export growth, but also affected the pace of industrial upgrading. The head of the relevant department of Jinjiang said that the export tax rebate should be based on the avoidance of double taxation of export commodities, and the refund of some or all of the domestic taxes on export products. This is a supportive policy to boost development, but has become part of the umbrella of some low-end export enterprises, forming the inertia of the development of enterprises.

In the export industry, some foreign trade enterprises benefiting from export tax rebates are also quite contradictory about the existence of tax rebates. "Because of the existence of export tax rebates, we are quite passive when bargaining with customers. Once they have identified the profit, it is difficult to accept the price increase. As a result, the price of products in the whole industry is difficult to upgrade. Therefore, most enterprises choose to do some low-priced public products and take the low-end market. Once you are labeled "low end goods", it is very difficult to compete for high-end orders. Mr. Wang, head of a foreign trade company in Quanzhou, said Mr. Wang.

In addition, the "fake export tax fraud" incident has made Mr. Wang quite angry over the past two years. "Yunnan Tengchong top 100 enterprises export fake about three million; a company in Gansu accepts false invoices of value-added tax, cheated export tax rebate nearly twenty million yuan...... Every year, as long as the export tax rebate is adjusted, there will be many false invoices and tax fraud. As far as I know, there were dozens of Jinjiang last year. The policy is deceived, which has a great impact on the interests and reputation of the whole industry. "

Based on this, some people including Mr. Wang and relevant government departments believe that, at the right time, the export tax rebate should be gradually reduced or cancelled. The reduction of the tax rebate can be carried out smoothly in the textile and garment industry, which will make a good start for the future export policy adjustment.

"Long pain is better than short pain. After blocking the back road, we can force enterprises to seek improvement, develop at a higher level, and also standardize the healthy development of the industry. Only in this way can we truly boost industrial upgrading. The relevant departments responsible person said.

A few days ago, Chen Dongqi, vice president of the Macroeconomic Research Institute of the national development and Reform Commission, appealed to the media that "40 trillion GDP of the state, taxes account for about 10 trillion." The government has the ability to reduce taxes, we should carry out structural tax cuts, support enterprises to improve their ability to innovate, support residents to expand their consumption, and support the transformation of the mode of economic development.

In response, the relevant departments agreed that the tax rebate for export enterprises was not as good as that for export enterprises. "The proportion of domestic tax revenue to GDP is too high, much higher than that of foreign countries. This shows that the necessary structural tax cuts are necessary. Moreover, export tax rebates have oversupported export enterprises, causing low-end export enterprises to speculate on protective policies and escape the survival of the fittest in the process of industrial upgrading.

In addition, some enterprises believe that in the country, enterprises have to pay taxes from production to logistics and transportation, and then to terminals. If we reduce the corporate tax rate generally, it will help to build an environment of equal treatment of domestic and export products, and encourage resources to flow freely and reasonably in two domestic and foreign markets.

Many enterprises attempting to export to domestic market have also indicated that the domestic tax burden is too heavy. The development of enterprises that just started in China is limited. "If resources can be transferred from abroad to China, enterprises will be able to respond effectively to the worsening external economic environment. Moreover, this is also good for consumers. If we can replace the export tax rebate by lowering the corporate tax rate generally, it will help reduce the cost and price expectation of the enterprises, thus easing inflation and directly benefiting domestic consumers. " The enterprises mentioned above.

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Textile and garment export tax rebate rate adjustment

In March 1985, it announced the tax rebate policy for export products from April 1, 1985.

In July 1995, the export tax rebate rate of textile and clothing dropped from 13% to 10%.

In December 1996, the export tax rebate rate of textile and clothing dropped from 10% to 6%.

In January 1998, the export tax rebate rate for textile and garment was raised to 11%.

In January 1999, the export rebate rate of textiles and garments was raised to 11% from 13%. In July of the same year, the export rebate rate of textile products was raised from 13% to 15%, and the tax rebate rate of clothing was raised to 17% from 13%.

In July 2001, the export rebate rate of cotton, cotton and cotton products increased from 15% to 17%.

In January 2004, the export tax rebate rates for textiles and garments decreased from 15% to 17%, respectively, to 13%.

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

In July 2007, the export tax rebate was reduced from 13% to 11%.

In August 2008, the export rebate rate of some textiles and garments was raised from 11% to 13%, and in November of the same year, it was raised from 13% to 14% again.

In February 2009, the export rebate rate of textile and clothing increased from 14% to 15%. In April of the same year, it was raised from 15% to 16% again.

"Do you think the export tax rebate will be lowered?" This has become a recent greeting in Quanzhou's textile and garment industry.

The rumor of "textile and garment export drawback or downgrading" has been circulating in the market since the beginning of April. Although the relevant government departments have not been confirmed, during the Canton Fair, the rumors became more and more popular in Quanzhou's textile and garment enterprises.

For Quanzhou textile and garment export enterprises, which are mainly labor-intensive, what is the role of 16% of the tax rebate cake for the survival of enterprises and the development of the industry? Does tax rebate exist more advantages or disadvantages? Rumors once again aroused discussion in the industry.