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    Wang Tiankai: Textile Enterprises Have Been Subjected To High Value-Added Tax And Low Deduction.

    2012/3/6 8:56:00 22

    Textile Tax Levy

    CPPCC member, China

    textile industry

    Wang Tiankai, chairman of the Federation, said in an interview in March 4th that textile enterprises have also been bearing the additional burden of "high taxes and low deducting" of VAT.


    "At present, the international cotton price is four thousand or five thousand yuan cheaper than the domestic per ton. The textile enterprises are restricted by the quota and sliding tax of imported cotton, and can not buy the cotton that is cheap and cheap according to the market rules.

    In addition, cotton spinning enterprises have been bearing the additional burden of "high tax and low deduction" on value-added tax, and the impact of last year's sharp fluctuations in cotton prices, the difficulties of enterprises can be imagined.

    Wang Tiankai said.


    In an interview with the media, Wang Tiankai said that the current VAT system belongs to

    High key and low deduction

    The difference between taxes and fees has always been borne by the enterprises themselves.

    The cost of raw materials of cotton accounts for more than 70% of the total cost of cotton textile production, which weakens the competitiveness of the enterprises.

    According to incomplete investigation of VAT of the association in 2009, the whole industry increased taxes and fees by about 5000000000 yuan.

    Especially in the past five years, the profitability of cotton textile products has also declined significantly with the increase in domestic production costs.


    Wang Tiankai said, take the industry leading product pure cotton combed 32 yarns as an example.

    Ton yarn

    No cost tax space (after deducting cotton cost, all other production costs and profit margins) decreased from 7300 yuan in 2000 to 3995 yuan (January 2010), and the cost of manufacturing 32 cotton yarn of pure cotton has reached 4500 yuan / ton, which has made most enterprises lose money.

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