Textile And Garment Export Tax Rebate Upward Pressure Has Accelerated To Industrial Upgrading

This year, influenced by many factors, such as rising prices of raw materials and labor, appreciation of the renminbi, weakening of foreign demand, adjustment of export tax rebate policy, credit crunch and so on, the export profitability of enterprises has declined significantly, especially the export profit margins of labor-intensive industries such as textiles, clothing, light industry and agricultural products have been very limited.

The government officials studied the production and operation of the southeast coastal enterprises intensively, which showed that the difficulties of labor intensive enterprises have attracted high attention.

In July 21st, the central government made new arrangements and arrangements for macroeconomic work in the second half of the year, with special reference to "supporting small and medium-sized enterprises in solving production and operational difficulties".

The implementation of this preferential tax policy has fulfilled both commitments and differences.

First of all, it is not to raise export tax rebates for labor-intensive products in large areas, such as shoemaking, leather making, furniture, toys and so on are not preferential. From a geographical point of view, preferential policies are mainly concentrated in Jiangsu and Zhejiang, not Fujian and Guangdong.

This reflects a train of thought of the government: Taiwan will benefit from Fujian's close economic and trade development in the future, while Guangdong is forming a common prosperity circle with Hong Kong and Macao.

Secondly, while raising the export tax rebate rate of some textiles and garments, the export tax rebates for some pesticides and other products have been abolished. Basically, we have followed and strengthened the idea of maintaining pressure and upgrading industrial upgrading.

But this textile and garment tax rebate increase is lower than expected.

Earlier, the industry believes that the textile export tax rebate rate will increase by 2 percentage points to 13%, clothing export tax rebate rate increased by 4 percentage points to 15%, viscose fiber export tax rebate rate will also be a huge adjustment, from the current 5% to 15%.