The Tax Rebate Policy Is Lower Than Expected. The Industry Calls For A Fundamental Solution To The Market Demand.

Because of the appreciation of the renminbi and the sluggish demand of the international market, the textile industry has reduced the profits of the whole industry considerably.

Yesterday, the Ministry of Finance and the State Administration of Taxation issued a notice to adjust the export tax rebate rate of some commodities through the approval of the State Council.

The export rebate rate of some textiles and clothing increased from 11% to 13%, and the export tax rebate rate of some bamboo products increased to 11%.

The adjustment has been implemented since August 1, 2008.

As early as March, the China Textile Industry Association once visited various places, and the results showed that a large number of enterprises were marginalized and at a loss.

In May, the China Textile Import and Export Chamber of Commerce went to several provinces to investigate the export situation of textile and clothing.

Since then, the chamber of Commerce has submitted the investigation report to the Ministry of Commerce and suggested that trade policies for the textile industry should be adjusted moderately.

From June to July this year, Li Keqiang, Wang Qishan and senior ministries and commissions went to the coastal manufacturing industry to conduct field research.

The Ministry of Commerce and the State Administration of taxation have organized discussions on various enterprises' participation.

Frequent government research is considered to be a signal for the manufacturing industry to adopt policies.

From this point of view, intensive research is indeed conducive to the rapid introduction of policies.

From yesterday's notice, the notice will be implemented second days after the implementation of the policy, this speed is rare.

"This is a special thing."

Yesterday, the export tax division of the State Administration of Taxation said that there had been such a quick implementation case before, but there were not many.

The staff member said, "not yet."

But he did not indicate the exact time at present.

Since 2007, China has lowered or even cancelled the export rebate rate of some commodities for three times, so as to curb the excessive growth of the trade surplus.

But this year, due to the slowdown in external demand, the appreciation of the renminbi and the pressure of rising costs, China's textile industry has been in a predicament, and calls for the resumption of export tax rebates have intensified.

In September 2006, the government adjusted the export tax rebate for the first time and cancelled the export tax rebates for most minerals, coal and natural gas. The export tax rebate for textiles was reduced from 13% to 11%.

After that, some of the textiles were adjusted.

The corporate tax rebate rate is lower than expected.

"It's a good thing to tune up, but it's a little bit less.

We always thought it was 4 percentage points. "

Yesterday, Xu Jianchang, deputy general manager of Ningbo lion Dun group, engaged in garment trade, said.

He said recently that he had heard about the news, but he and his colleagues thought it might be increased to 15%.

Previously, he said in an interview with the newspaper that the profits of former enterprises were about 9% to 10%, but the profits that had been ensued last year dropped sharply to 6% to 7%.

He said that the problems in the industry are basically those, such as RMB appreciation, import tariff reduction, labor and raw materials rising, and financing difficulties.

Xu Jianchang believes that the export tax rebate is the fastest and most affordable policy.

When asked what kind of support policy the textile enterprises hope for after the export tax rebate adjustment, Xu Jianchang said that it is also very difficult for the state to introduce policies, and now that the RMB has stabilized, enterprises have already passed the most difficult time.

A person in charge of the clothing trade department of the China based foreign trade company, the largest foreign trade company in Ningbo, expressed a similar view yesterday.

He said that the appreciation of RMB has exceeded 6.92% in 1-6 this year, and the tax rebate has increased by only 2 percentage points, which is a drop in the bucket.

The stock market has been overdrawn ahead of schedule.

However, yesterday's good news did not play a role in the textile sector.

Of the dozens of textile and apparel listed companies, only 5 have risen.

Dayang's creation rose by 0.79%, Ru Tai A rose 1.02%, Chinese clothing rose 2.35%, Weixing shares rose 4.1%, and Jiangsu three friends rose 4.05%.

Although yesterday's market environment is not good, but the performance of the entire textile and clothing category is still at the forefront of decline.

It is understood that as early as June this year, the market rumors that textile products export tax rebate is expected to increase 2 percentage points, while clothing products are expected to increase 4 percentage points.

High level repeated research has also made rumors affect the market.

Stimulated by this news, in early July, the performance of chemical fiber plate stocks rose by an average of 4.57%, and 5 stocks such as Huafeng spandex were trading on a daily basis.

Judging from the trend of the whole plate, it has swept away the trend of decline since March, and has obviously increased since the beginning of July.

Yesterday, the 1966.04 closing of the textile sector was far higher than the 1655.51 hit on June, 20.

Judging from the textile pactions in the first half of the year, the adjustment of export tax rebate may add a profit of 8 billion 888 million to the whole industry.

In the first half of this year, garments and accessories were exported to US $49 billion 960 million, textile yarn, fabrics and products were exported to US $31 billion 720 million, and two categories added a total of US $81 billion 680 million.

According to Xu Jianchang, only general trade can carry out the export tax rebate, which accounts for about 80% of the whole industry.

Then, according to the pactions in the first half of the year, the increase in tax rebates will likely generate an additional 1 billion 306 million 880 thousand US dollars for the industry.

According to the current exchange rate of 6.8, there may be a 8 billion 888 million increase in profits.

In comparison, the textile industry achieved a profit of 41 billion 900 million yuan in the first five months of this year.