Textile Service Tax Rebate Rate Adjustment, Textile Enterprises Wait And See

Since April 1, 1985, China's export tax rebate policy has undergone many adjustments, and every time it takes corresponding measures to cope with the changes in the international and domestic economic situation.

From the data of ten years, only this year and 1999, the tax rebate rate was raised two times in one year.

To raise the tax rebate rate by 1~2 more points may make the textile and garment enterprises with price as the main competitive means catch their breath, while the large and medium-sized enterprises with quality and brand as the main competitive means are better opportunities for development.

At present, the state has not yet made a clear adjustment on the export rebate rate of textiles and clothing. The more optimistic expectation is that the tax rebate rate has increased from 14% to 15% since January 1, 2009.

The adjustment of export tax rebate is a double-edged sword. International buyers are also concerned about China's export policy. Once the tax rebate is raised, they will inevitably lower the purchase price.

Although the export tax rebate rate has been raised, factors such as raw materials, labor costs rising and international environmental pressure still exist.

The key of textile and garment export enterprises is to improve their management level, adjust their product structure, enhance their bargaining power, enhance their ability to contact customers, and enhance their competitiveness with products with high added value. Only in this way can long-term development be achieved.

After September this year, the number of international orders received by enterprises has been significantly reduced. We understand that many export enterprises now have only three months' short-term orders.

On the one hand, under the influence of the financial crisis, the international demand has shrunk, but it does not exclude foreign buyers from waiting for the adjustment of the tax rebate policy of the Chinese government.

However, the effect of export tax rebate adjustment policy depends mainly on the elasticity of commodity prices, and there is uncertainty.

For some export commodities which are highly competitive in the international market, these 1~2 points do not have much impact on the profit margins of the enterprises. For the weaker competitive commodities, the profits generated by the increase in the export tax rebate rate can not fundamentally change the ability to receive orders and profitability of the export enterprises. The export volume may not be significantly improved, and the profit margins of the enterprises will not change much.

The tax rebate rate of 17% is the highest point, and the adjustment of state policies can not be carried out step by step.

Weak demand is temporary. At present, China's textile share in the international market has reached 30%. The current international market atrophy is temporary, and the trend of China's textile demand has not changed.

As analyzed by Xu Kunyuan, vice president of China Textile Industry Association, from the international market, Chinese textiles have been favored and recognized by most consumers in the world in terms of performance, price and quality.

With the rise of industrial costs in Europe and the United States, the textile industry will be further pferred to developing countries. China's textile industry will still be promising. There will still be huge demand for Chinese textiles in the international market.

The export tax rebate refers to the international policy of returning the accumulated indirect taxes (value added tax and consumption tax) in various production sectors that domestic products are levied on.

There are two reasons why export tax rebates are not regarded as trade protection measures in international trade. One is that indirect taxes such as value added tax and consumption tax are imposed on consumer behavior, while export goods are not consumed domestically. Therefore, these taxes should be exempted or returned. Moreover, zero tax rates on export goods can avoid double taxation at home and abroad.

France is the first country to implement value-added tax in the world, and its practice on export tax rebate is also typical. Especially, it can see its success in the export tax rebate system after the implementation of value-added tax.

Britain, Italy, Greece and other European Union countries, as well as New Zealand, have implemented zero tariff policy on export goods and services.

The export tax rebate in South Korea is wide. Besides the value-added tax of export goods, it also reclaims import duty, temporary import surcharge, special consumption tax, liquor tax, traffic tax, special tax on farming and fishing villages, education tax and other 7 national taxes.

In the export tax rebate system adopted by various countries, some countries adopt the way of retreating, and the way of exemption, offset and tax refund is widely adopted in developed countries, especially in Europe.

At present, 31 of the 51 main countries that implement VAT in the world adopt the tax refund method of exemption, offset and refund.

At the same time, tax-free purchase is also an important way of tax refund adopted by developed countries, which has played a positive role in the export tax rebate process.

Yang Jing: editor in charge