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    Textile Export Tax Rebate Rate Will Not Drop Again

    2008/5/13 15:24:00 55

    The Export Rebate Rate Of Textile Industry Will Not Drop Again.

    The export tax rebate rate of textile industry which began rumors in the second half of last year will be reduced again.

    Yesterday, at the forum of the national key textile enterprises in Shandong, Du Yuzhou, President of the China Textile Industry Association, made clear for the first time that the textile export tax rebate rate will definitely not drop again.

    "Most enterprises can not keep up with the pace of cost growth and profits are decreasing," Du Yuzhou said. In the first 11 months of last year, the average sales profit rate of the industry was 3.97%. In the first two months of this year, the textile enterprises accounted for 32.94% of the total number of enterprises in the sales profit margin of more than 3.97%. The total profits contributed by enterprises less than 1/3 accounted for 100.4% of the total profits of the whole industry, which meant that the remaining 2/3 enterprises were in a state of loss or profit.

    The leading enterprises in the conference generally attributed the difficulties faced by the industry to such factors as RMB appreciation, rising labor costs and declining export tax rebate rate. They hope that the export tax rebate rate of the industry will no longer be reduced, but should be gradually improved.

    Du Yuzhou said that every 1% appreciation of the renminbi, the sales revenue of enterprises will be reduced by 1% accordingly.

    From the second half of 2005 to the present, the RMB exchange rate has risen by 18 percentage points.

    At the same time, the export rebate rate dropped from 17% to 11%, down 6 percentage points, which has become an important factor in the textile industry's reduction of profits.

    Previously, the latest adjustment time for export tax rebates for textiles and clothing was in 2006 and 2007, down from 13% to 11%.

    The rate is no longer down, although the textile industry is relieved, but the industry is more concerned about whether the export tax rebate rate can be callback. "China's first textile network editor in chief, Wang Qian said," the difficulties encountered by the textile industry in the appreciation of Renminbi and the cost increase are irreversible. The enterprises demand a great deal of callbacks, and the relevant parties have also made a nationwide survey of the textile industry this year. "The report submitted to the relevant departments of the State Council clearly stated that" the export tax rebate rate can be adjusted back to two percentage points ", that is, to tune back to 13%. Wang Qian said that recently several ministries and commissions are doing this work. If the two points can really be adjusted, it will be very good news for the whole industry." export tax rebate "

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