Industry Interpretation: What Are The Preferential Tax Policies For The Textile Industry?

China is the largest textile producer, consumer and exporter in the world. It is a large and stable pillar industry in the contemporary Chinese national economy.

The textile industry involves not only the production and processing of garments and fabrics, but also the acquisition and final export of cotton and agricultural products.

All along, the state has implemented a series of tax policies to encourage and support the development of the textile industry.

This article will comb the textile industry's preferential tax policy, supplemented by interpretation, in order to provide readers.

First, the history and development of textile industry

The textile industry, the largest traditional industry in China, is a large and stable pillar industry in the contemporary Chinese national economy.

China's textile industry has a splendid history of handmade textile industry.

As early as the Han Dynasty, the Silk Road and the Silk Road, which were developed by the central and western regions, and the economic, technological and cultural exchanges between the East and the west, had already carried the ancient civilization of China, leading many countries in Central Asia, Western Asia, southern Europe, Western Europe, Southeast Asia and South Asia with superb technology and large-scale commodity production mode, and successively created sericulture and silk weaving industry.

The emergence and development of modern machine and textile industry in China was restrained by the country's poor and weak in the past hundred years.

But after the reform and opening up, the party and the state attached great importance to it, catching up and catching up and coming back to the world after several years.

Since twenty-first Century, with the economic globalization and China's accession to the WTO, the share of China's textile industry has increased further in the world market.

In the 2000-2015 years, the developed countries in Europe and the United States as the main market, the annual export volume from 53 billion US dollars (global share of 15%) to 291 billion 150 million US dollars (around 37% of the world).

Accordingly, the trade surplus of the textile industry increased from 39 billion 150 million US dollars in 2000 (24 billion 100 million US dollars in total trade surplus in the same year) to 264 billion 600 million US dollars in 2015 (the total surplus of the total import and export trade in the same year was 594 billion 500 million US dollars).

The textile industry plays an increasingly important role in balancing the balance of payments and increasing foreign exchange reserves.

Two. What are the preferential tax policies for textile enterprises?

Textile enterprises can enjoy more tax preferences, some of which are targeted at raw and processed agricultural products, some of which are preferential for small and micro enterprises, partly preferential for the region, and a small number of targeted workers.

Generally speaking, there are many preferential tax policies for textile enterprises.

(1) value added tax

(two) corporate income tax

(three) local tax preferences

Preferential tax policies for textile industry are mainly concentrated in the Xinjiang Uygur Autonomous Region.

Xinjiang is the most important cotton production base in China. In 2018, the output of cotton in Xinjiang reached 5 million 111 thousand tons, accounting for 83.8% of the whole country.

The regional government has introduced a number of policies and measures to support cotton production and textile and garment processing and production, including: (1) to set up special funds for the development of textile and garment industry; (2) to implement preferential tax policies; (3) to implement preferential policies for low tariff; (4) to implement the subsidy policy for textile and clothing freight; (5) to implement the subsidy policy for the use of cotton in Xinjiang; (6) to implement the training subsidy policy for enterprise employees; and (7) to implement the social security subsidy policy for enterprises.

Among them, the notice of the the Xinjiang Uygur Autonomous Region people's Government on accelerating fiscal and tax policies for the development of textile industry in the autonomous region (new government [2010] 99), and the notice on Issuing the implementation measures of the fiscal and taxation policies for speeding up the development of the textile industry in the autonomous region (new fiscal law tax [2011] 7) and a series of local documents have made detailed provisions on local tax preferences.

Three, industry interpretation

At present, the problem of high cost in textile industry is still outstanding, which includes both production cost and tax cost.

The high cost of electricity in China is an important reason. In the case of equipment automation, digitization, intelligent water upgrading and electricity substitution for large quantities of labor, the problem of high electricity price is more prominent.

In this regard, the government continuously calls on the government to continuously promote the reform of the energy system and mechanism, break the monopoly system of the energy industry system, promote the market-oriented reform of the energy industry, establish a mechanism for the formation of the energy price market, play a decisive role in the allocation of resources in the market, and gradually reduce the energy costs of enterprises, in particular, promote the direct reduction of the electricity consumption of enterprises and relieve the cost pressure.

In terms of tax cost, although there are many preferential tax policies, there is not much to enjoy.

For example, the goal of universal preferential tax reduction policy is small and micro enterprises, which already have a certain scale of enterprises can not enjoy it; while preferential policies in Xinjiang area are strong, large enterprises are still concentrated in the southeast coastal areas, and export trade enterprises are few.

In addition, the "environmental protection tax law" has been formally implemented, and has established the market rules of "pollution control, emission reduction, and excessive pollution damage". The environmental protection tax has a great impact on the textile industry, especially printing and dyeing, water and electricity consumption. The corresponding environmental protection tax also increases the tax burden on the industry.

Under such circumstances, the industry continuously appeals to the government to continue to promote the reform of the tax and fee system.

First of all, we should further promote the reform of China's tax system and replace the "plus" of enterprise efficiency and the multiplication of market vitality with the "subtraction" of government revenue.

Secondly, we should push forward the tax structure reform and tax rate optimization, and gradually reduce the value-added tax rate of various entities in the manufacturing sector, further easing the pressure of corporate tax burden.

Finally, we should introduce more preferential tax policies, implement precise tax reduction measures, appropriately expand the coverage of preferential tax policies, adopt differentiated tax measures for the textile industry with strong contribution to employment, increase tax reduction efforts for small and medium enterprises, and pay close attention to the implementation of policies so that policies can be implemented and enterprises can enjoy substantial benefits.

Fortunately, Premier Li Keqiang has declared that the value added tax will be lowered in April 1st.

Drop two trillion tax cuts!

I believe the textile industry will soon usher in a new spring.