Recently, the National Tax Administration announced increase of the textile, clothing export Tax refundrate is from 11 percent to 13 percent; the export Tax refundrate of some of the bamboo products will be to 11 percent, the new tax refundrate will be implement .
In accordance with the export tax refundpolicy, non-tax-rebate part will be directly included in the cost of production. Theoretically speaking, the profit increasing rate will be up with the increasing rate of the export tax refund. Based on 2007 data, the export Tax refundrate increased 2 %, in 2008 textile and apparel industry-wide increase in pre-tax profit of 19.2 billion yuan.
Himfr.com, the leading third generation of online business-to-business (B2B) platforms, consider that the real situation of enterprises are not so optimistic, view from the historical experience of the past few years, the changes of the export Tax refundrate is not entirely born by the exporters. At the circumstances of increasing export Tax refundrate, foreign investors will inevitably reduce product pricing. We estimate that the 50% changes in the Tax refundrate can pass on price adjustments. The export Tax refundrate increased 2%, the pre-tax profits of textile can relatively increased 10.8 %.
Chinese chemical fiber enterprises are big but relatively weak; they can not easily climbed out of a slump. In 2008, China's chemical fiber industry overall capacity reached 25.72 million tons, the output reached 23.9 million tons, production capacity and output has exceeded more than 50 % of the world. Since the second half of 2007, chemical fiber industry -china.com/manufacturer- sales and marketing margins fell significantly. After Guangzhou Trade Fair 2008, the textile industry saw a decrease in order.
The statistics of Chemical fiber industry sales in June this year show that sales revenue growth rate dropped 2.6 percent compare to the same period last year, reaching 14.03 percent, the lowest for the past five years. Chemical fiber industry, as a whole, benefit a lot from the adjustment of textile Tax refund. Since the second half of 2008, the cold wave of Chinese textile comes, we believe that declining buying demands of Europe and the United States market is the main reason for the economic downturn. And the following factors: accelerate the appreciation of the RMB, the increased cost leaded by rising prices of production factors, the same capacity for rapid expansion, low product differentiation and excessive competition, all are the causes. The export Tax refund rate is not the main factor affecting exports.
The industry experts of Himfr.com said 2009 will be a hard year for textile and garment As an export-oriented industries, textile and garment industry bears heavy pressure, including raw material prices, the appreciation of the RMB, and the rising labor costs. From the industry supply and demand situation, despite the export tax refund rate to stimulate the increase, but the overall situation is still not optimistic, we expect that industry structure adjustment is the substantive profit growth.
About Himfr.com Himfr.com is a promising e-commerce company and a leading vertical search engine company in China. We provide an efficient, trusted search engine platform connecting small and medium-sized buyers and suppliers around the world. Our product search engine database includes more than ten million products and our community (Trade Post) has published more than 1.2 million buying leads.
I am a professional editor from
http://www.himfr.com/, and my work is to promote a free online trade platform.
http://www.himfr.com/ contain a great deal of information about
Skin Industry,
Food Grade Chemicals,
carbon fiber adhesive, welcome to visit!
