Clothing Market Tax Rebate Rate Is Expected To Be Raised To 15%

In October 17th, the Executive Council of the State Council requested that the export tax rebate rate of clothing, textile and other labor-intensive products and high value-added electromechanical products be increased to support the export of dominant enterprises and products.

It is also widely rumored that the export tax rebate rate for textile garments will be raised to 15% again in the fourth quarter of this year.

In July 31st this year, the Ministry of Finance and the State Administration of Taxation issued the notice on adjusting the export rebate rate of some textiles and garments. The circular pointed out that after the approval of the State Council, the export tax rebate rate of some textiles and garments increased from 11% to 13%, and has been implemented since August 1, 2008.

"The introduction of this policy is good news for the whole industry. It is a tonic for 1/3's good companies, but for 2/3's poor companies, it's just a shot in the arm."

Gao Yong, vice president of China Textile Industry Association, compares the effect of export tax rebate policy on enterprises.

But at the same time, the figures released by the General Administration of Customs in China are not optimistic: in the first 9 months of this year, the export of clothing and accessories in China was 87 billion 80 million US dollars, an increase of 1.8%, down 21.2 percentage points from the same period last year.

The good news of export tax rebate policy implemented since August 1st failed to achieve export growth in 8 and September, and export growth still showed a downward trend, which reflected the downturn of garment export market from one aspect.

Experts believe that the next 1~2 years, the entire textile service industry "cold winter" continues.

Therefore, the call for raising the export tax rebate rate again is increasing.

Recently, the export tax rebate rate for textile products will be raised to 15% again in the near future.

Du Yuzhou, chairman of the China Textile Industry Association, yesterday called for the hope that the export tax rebate rate would "revert to the original 15%", and hoped that the government could strengthen its social and public services for SMEs, including training and support in the fields of technology, information and logistics, and so on. 15%

"The intensity of the increase to 15% is still relatively weak. I think it is more appropriate to raise the export rebate rate of some textile products to 17%."

Wang Qian, editor in chief of China's first textile network, believes that according to the analysis of the current foreign trade situation, it is likely that the export rebate rate of textile products will be raised again in the fourth quarter of this year: "the export tax rebate rate for home textiles and clothing is expected to be substantially raised to the highest level in the history of our country - 17%."