Sun Huaibin: Textile And Garment Export Tax Rebate Rate Should Not Be Lowered At This Stage.

Over the past few years, rumors about the export tax rebate rate of products represented by textiles and clothing have come down one after another. Especially with the gradual growth of export tax rebate nodes in the early July, rumors spread day by day, causing some textile and garment enterprises to panic.

A few days ago, our reporter interviewed the relevant people and enterprises on the feasibility of the situation and the possibility of this policy adjustment. They said that the textile industry is facing multiple pressures such as raw materials, energy, capital and exchange rate. Despite the good start of the textile industry in the first quarter, there are still many uncertainties in the development of the industry. At this stage, it is not appropriate to cut down the export tax rebate rate of textile and garment.

Reporters learned in the interview that the social textile and garment export tax rebate rate will not be true. The relevant ministries and commissions of the state denied this statement. They said they had not decided to adjust the export tax rebate rate in the near future, and believed that the news of the society's speculation was not conducive to the steady development of the national economy and industry.

At the same time, the heads of relevant ministries and commissions said that people should realize that with the needs of the national economy and industrial development, the national macro-control policies will also be adjusted accordingly, and this adjustment will follow the basic principles of scientificity, operability and sustainability.

Sun Huaibin, director of the China Textile Economic Research Center, thinks that textile and garment enterprises are so sensitive to the adjustment of export tax rebates, mainly because the small and medium enterprises occupy most of the textile and garment enterprises.

In 2010, the total export volume of textiles in China amounted to 77 billion 51 million US dollars, and the export tax rebate was about 78 billion 500 million yuan.

Floating up and down one percentage point is related to the profit of about 5 billion 200 million yuan in the textile industry.

In particular, textile and garment enterprises have been in a small profit for a long time. A small percentage of the small and medium-sized enterprises are facing a life or death experience, which means that a large number of small and medium-sized enterprises will slide under the line of life and death.

Judging from the motives of the previous export tax rebate adjustment, from January 1998 to July 2001, the export rebate rate of textile and garment increased 3 times from 6% to 15%, and clothing increased from 6% to 17%. The reason for the increase of export tax rebate was to deal with the huge impact of the Asian financial crisis in 1998 on China's exports.

In 2008, the global financial crisis caused by the subprime mortgage crisis in the United States seriously blocked our export of textile and clothing. Since the second half of 2008, the export growth rate has continued to decline, so the export tax rebate rate has been callback again.

In February 4, 2009, the State Council passed the textile industry adjustment and revitalization plan in principle, and raised the export rebate rate of textile and clothing from 14% to 15%.

In April 1st of the same year, the export rebate rate of textiles and clothing increased to 16%.

Related sources said why the recent rumors that the export tax rate has been cut down frequently is mainly due to the gradual resumption of the export situation of textiles and clothing, including the textile industry last year. The national economy is generally out of the financial crisis, coupled with the temporary surplus of China's exports and the surplus after the deficit.

Under such circumstances, it is not excluded that the state has the possibility of adjusting the tax rebate rate of export commodities, but different industries will also adopt different adjustment strategies.

It is understood that in the first quarter of this year, China's textile and clothing exports continued to grow, and total exports amounted to US $49 billion 866 million, representing an increase of 23.68% over the same period last year, and the growth rate increased by 8.24 percentage points over the same period last year.

From the decomposition of China's textile and clothing export index, the price contribution of textile and clothing exports in March was higher than that of the same period last year, but the contribution of exports decreased.

Sun Huaibin analyzed this year that the growth of textile and clothing exports mainly came from the increase of the added value of products, not the increase in export volume.

In view of the current downward textile

Sun Huaibin said that from the international point of view, despite the overall recovery, risks remain, and the US dollar continues to depreciate.

From the domestic point of view, although the economic data of the state and industry in the first quarter were relatively ideal and the opening was good, there were some factors in last year's pition, and the adjustment of statistical caliber.

It is undeniable that the industry is facing increasing risks and uncertainties, especially the instability of textile raw materials such as cotton and chemical fiber, which makes textile enterprises gradually lose their sense of happiness. Downstream enterprises can not effectively pmit price factors, and their bearing capacity is becoming weaker and weaker. This year, with the rising cost of coal, electricity, oil and pportation, and the tightening of money supply, the RMB exchange rate is generally rising, leading to an increase in risk.

If we reduce the export tax rebate rate at this time, we will have a major impact on the operation and employment of export enterprises.

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Sun Huaibin warned enterprises that they should calm down and rationally face these unproven news, overcome panic and heighten their sense of crisis, intensify their hard work and make preparations for dealing with all variables, vigorously develop domestic market and overcome risks and win steady development with excellent product quality and competitive comprehensive strength.

In the interview, the enterprise reaction is also very strong, they say, China's textile enterprises are still mainly export oriented, the industry profit rate is low, the overall anti risk ability is still relatively fragile.

Once the RMB appreciation, labor costs rise, raw material prices rise, trade protectionism and other factors superposition, most SMEs will face the risk of bankruptcy.

If the export tax rebate rate is down again, or even a one-time reduction of 5 percentage points, a large number of small and medium-sized enterprises will lose their meager profits, and the risk of bankruptcy will increase sharply this year, along with the continuous tightening of industry funds.

Although the tax rebate rate adjustment is in line with the guiding ideology of national industrial upgrading and domestic demand enhancement, the textile industry is related to the employment problem of tens of millions of people. Therefore, it is very important to choose the timing and intensity of tax rebate adjustment.

They suggested that when adjusting the export tax rebate policy, the departments concerned should take full account of the difficulties faced by the textile and garment industry and make scientific decisions.