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'Chinese textile & apparel firms have heavy tax burden'
Aug '13
Chinese textile and garment enterprises are subjected to heavy tax burden, according to Jiang Hui, chairman of China Chamber of Commerce for Import and Export of Textile and Apparel.
Speaking at the ‘2013 Esquel Sustainability Symposium - Be Green and Innovative’, Mr. Jiang said China’s textile and garment enterprises pay a variety of taxes which average about 35 percent.
He said many companies are willing to pay taxes, but several kinds of fees that are to be paid confuse the companies.
According to 2011 Misery Index survey report, Chinese industrial enterprises have to pay percent value-added tax (VAT) and income tax, as well as bear environmental protection and other costs.
To varying degrees, the Chinese firms are also required to pay urban construction tax, local education surcharge, disabled funds, property tax, stamp duty, vehicle tax and other numerous taxes.
Mr. Jiang said heavy taxes greatly dampen the enthusiasm of entrepreneurs to do something that really benefits the economy.
In 2012, China’s textile industry accounted for 11.5 percent of total industrial production. At present, China has the world’s largest and most complete industrial chain in the textile industrial system. It is also the world’s largest textile and garment producer and exporter.
Mr. Jiang said the Chinese textile industry is facing rising labour costs, the continued appreciation of the renminbi, and structural adjustment pressures. In addition, lack of funding, poor management, etc. are making it increasingly difficult for enterprises to survive.
According to a recent survey, 77 percent of the surveyed enterprises said Government should reduce the tax burden and solve the financing problem to support the textile industry.

Fibre2fashion News Desk - India

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