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    Export Tax Rebate For Garment Industry

    2015/2/4 13:09:00 22

    Clothing IndustryCurrent SituationProfitTrend

    The Ministry of Finance issued a notice to raise the export tax rebate rate of some high value-added products, corn processing products and textile garments starting from January 1, 2015.

    Textile and garment industry

    The export tax rebate rate increased from 16% to 17%, which achieved full refund.

    The main categories are yarn, fabric, etc.

    Clothing is the traditional pillar industry in Pinghu, and the clothing enterprises in Pinghu are mostly export-oriented enterprises.

    The tax rebate rate has increased by 1 points. What will be the impact on the garment enterprises in Pinghu? What role does the export rebate rate play in the export-oriented economy? For this reason, the reporter visited the local garment enterprises in Pinghu.

    Garment enterprises are facing difficulties.

    In Pinghu, the garment industry has a history of nearly 30 years.

    At present, there are more than 2000 garment manufacturing enterprises in Pinghu, with an annual output of 300 million garments and an annual output value of about 10000000000 yuan.

    According to statistics from relevant departments, in the first half of last year, the number of enterprises and practitioners in the apparel industry in Pinghu decreased by 13 and 6907 respectively compared with the same period last year. The total output value of the garment industry was 5 billion 586 million yuan, a decrease of 280 million yuan over the same period last year.

    From this set of data, it is easy to see that the clothing industry in Pinghu is experiencing a decline.

    Now, the improvement of export tax rebate rate is undoubtedly a strong booster for export oriented garment enterprises and textile enterprises.

    The move boosted industry confidence.

    Though near the end of the lunar calendar, there is still a busy scene in the garment factory.

    The order they made now has been ordered by foreign businessmen six months ago, and the price has already been fixed.

    Now, the government has raised the tax rebate rate, which is equal to the new year's Eve, giving red envelopes to all enterprises.

    "Although the increase is only 1%, but for a large number of enterprises, the tax refund is not a small number."

    Xu Yongfa, chairman of Jiaxing Yongcheng Garments Co., Ltd.

    Xu Yongfa said that in 2014, China's foreign trade situation was not as good as in previous years, especially in clothing, textiles and other traditional industries.

    The government's action can boost industry confidence and show the importance of exports.

    Coincides with Xu Yongfa's opinion, there is also Tao Jianwei, chairman of Pinghu Cheng Pei Garments Co., Ltd.

    He also believes that this is good news for Pinghu's foreign trade clothing enterprises.

    Improving export tax rebate rate is not omnipotent.

    However, another professional who has been engaged in the foreign trade industry for many years said that raising the tax rebate rate may not necessarily have the desired effect, and then adjusting the tax rebate rate to boost confidence may not be obvious.

    The industry said: "foreign businessmen now understand China's policies very well. Once the tax rebate rate is adjusted, their quotations will be adjusted accordingly.

    Now that the tax rebate is full, they will take the tax rebate.

    offer

    It is often a few months before the order is signed, and we will lose it if the drawback rate is reduced. "

    The industry also said that most of the garment enterprises in Pinghu were processed for foreign businessmen, with low technology content and labor intensive.

    The main problem now is how to reduce labor costs and avoid orders flowing to the mainland, Vietnam and other places where labor force is cheaper. These are not effective changes in raising the tax rebate rate.

    Xu Yongfa also believes that in order to get rid of the current predicament, the export-oriented traditional industries should rely not only on policy support, but also on pformation and upgrading.

    Xu Yongfa said: "pformation and upgrading is not completely abandoning the original and starting a new one, but upgrading the existing ones, such as raising the level of mechanization, reducing labor costs and changing the traditional ones.

    Sales way

    We should make good use of this platform.


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