Announcement Of The Ministry Of Finance: Textile And Garment Export Tax Rebate Rate Increase

Treasury Department

Yesterday, a notice was issued that the Ministry of Finance and the State Administration of Taxation issued the "notice on raising the export tax rebate rate of some commodities" after approval by the State Council. It is clear that from the first day of next month, the export tax rebate rate of some labor-intensive and high technology and high added value commodities should be appropriately adjusted to prevent the passive situation that will affect China's economic development due to the sharp decline in exports.

Notice pointed out that the export tax rebate adjustment involves a total of 3486 commodities, accounting for about 25.8% of the total number of goods in the customs tariff.

textile

The export tax rebate rate for clothing and toys increased to 14%; the export tax rebate rate for daily and artistic ceramics increased to 11%; the export tax rebate rate of some plastic products increased to 9%; the export rebate rate of some furniture products increased to 11% and 13% respectively; the export rebate rates of goods such as AIDS drugs, recombinant human insulin lyophilized powder, Huang Jiaoyuan, toughened safety glass, capacitor tantalum wire, marine anchor chains, sewing machines, fans, CNC machine tools and carbide knives were increased to 9%, 11% and 13% respectively.

Export rebate rate

An expert from the development research center of the State Council said that the export tax rebate is not a subsidy for export products, but that the products should also be subject to value-added tax in the importing countries. Therefore, it is an international practice to refund the value-added tax and avoid double taxation when exporting. Therefore, it should not be regarded as a policy means to regulate the export scale. The government should strengthen the stability and coherence of the foreign trade policy.

On the other hand, the State Administration of Taxation has recently studied and perfected the adjustment plan for the collection and management of enterprise income tax.

The letter issued by the State Administration of Taxation on the proposal for the adjustment of the scope of administration of enterprise income tax has clearly stated that the corporate income tax of banks (credit cooperatives) and insurance companies is managed by the state tax department, and the corporate income tax of other financial enterprises is managed by the local tax department.