Representatives Of The Two Sessions Called For The Reduction Of Import And Export Taxes In The Textile Industry.

Hu Yali, who had been in Shanghai for 5 days to take part in the East China Import and Export Fair (hereinafter referred to as "China Fair"), was somewhat disappointed.

"The number of cards received can be counted by 10 fingers. Fewer people last year, basically no one this year."

Hu Yali said.

Recently, the China Textile Import and Export Chamber of Commerce and the China Textile Industry Federation released a report that textile exports may have a negative growth in the first half of this year.

Textile chamber of Commerce said, "it is expected that in the first half of 2012, China's textile and garment export demand will be less and the competition pressure will be more prominent. The number of industrial exports will be low or negative growth in the first half of the year"; the Federation of textile industry said, "last year, the number of textile and garment exports in China declined sharply, up only 0.5% over the same period last year. It is expected that export demand will remain insufficient in the first half of this year, the industry pressure will be more prominent, and the number of industrial exports will be negative or negative."

"To tell you the truth, this year will be a critical period for us to die and die."

Qian Yang, business manager of Jiangsu international textile and garment department, said.

When he talked with reporters during the autumn fair last autumn, he joked that if next year's Autumn Fair could see their old faces, it would mean that they had survived. If they could not see it, they might have withdrawn from the industry.

Qian Yang did not attend this meeting.

His company is a professional trading company, which is more difficult for them than export oriented factories. In order to get orders, many factories compete maliciously on quotations, resulting in no profit or even loss.

Qian Yang said he said that 70% of the small processing plants that had come to contact were bankrupt or abandoned.

Data from the Federation of textile industry also show that some small and micro textile enterprises and export processing enterprises in the Pearl River Delta industrial clusters have only about 40% operating rate.

The textile import and Export Chamber of Commerce reported that foreign demand was sluggish, raw material prices were volatile and labor costs increased.

In another bad news, India decided to ban cotton exports recently, which is a blow for Chinese textile enterprises.

In recent years, India has become an opponent of China and other textile exporting countries in the international market, especially in terms of low-end textiles. India relies on low cost of raw materials and labor cost advantages, constantly nibbling the share of China's international market. India's move is also to improve the competitiveness of the end textiles in the international market.

In addition, the textile import and export chamber also said that the cost of labor in textile enterprises increased significantly. Sampling showed that more than 80% of enterprises were short of employment, and wages increased by more than 15%.

Recruitment difficulties, unable to retain and improve the living treatment of workers, etc., have made the labor cost of enterprises showing a rigid upward trend.

Small and medium-sized textile enterprises still face problems such as poor financing, high financing cost and unstable order quantity. Especially for export processing enterprises, when the RMB appreciation expectation is still in existence, the ability to resist risks is weak. Once these enterprises are shut down too much, they will directly affect the industry and social stability.

Faced with the grim situation, many representatives from the textile industry at the two sessions also put forward suggestions. Zhao Linzhong, chairman of the National People's Congress and chairman of the board of directors of Fu run Holdings Group, proposed in their three sessions that they hope to lighten the tax burden of the textile industry from the following aspects: first, it is suggested that the textile industry be included in the pilot area of the State Administration of Taxation on the management of approved tax deduction for the value-added tax of agricultural products in some industries. The deduction rate of the agricultural product input tax from the current 13% is modified to the applicable tax rate of the goods sold by taxpayers when they are re sold, that is, 17%.

The two is to suggest that the manual wage of textile industry be allowed to be deducted when levying VAT; the three is to allow the R & D input and brand marketing cost of the textile industry to be included in the scope of the VAT input tax, or to impose value-added tax on some of the dominant innovative enterprises and brand enterprises.