Home / Knowledge / News / Apparel/Garments / Export tax rebate subsidises foreign consumers
Export tax rebate subsidises foreign consumers
04
Sep '09
A professor of economics Mr. Zhang Shuguang has pointed out that policy effects of adjustment in export tax rebate will be very poor, under the background of declining demand in foreign countries and shrinking domestic market.

Many foreign countries have imposed protective measures on import of goods from China and most of the benefit of the tax rebates has been lost, due to pressure from overseas buyers to reduce rates.

From April 1, 2009 onwards, export tax rebate rate on part of China's textiles and clothing has been raised to 16 percent, close to zero export rate.

The retailers to combat the slowdown in trade have introduced huge promotional discounts to attract the customers, and these purchases in effect are subsidized by the tax rebates given to Chinese textile and clothing manufacturers by the state.

Relevant studies have estimated that, domestic textile enterprises are able to get only 50-60 percent of real benefits from tax rebate, taking into account the price squeeze by foreign importers on grounds of increased export tax rebate rates.

An official from the Ministry of Commerce said, “We have always stressed that our ultimate goal is to protect market and safeguard employment, but not profits.”

Fibre2fashion News Desk - China

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search