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Govt to pullback export rebate rates for textile industry
12 May '08
1 min read
Leaders of State Council recently studied the research report on the textile situation of six provinces done by the China Textile Industry Association. The survival crisis of the sector has aroused concern and a supporting policy for ameliorating the conditions is expected to get formulated soon.
It was in early March that China Textile Industry Association made market research into 6 provinces discovering that under the ongoing appreciation of RMB, there is an increase in raw materials and labor costs and lowered export tax rebates. Besides, two-thirds of the textile enterprises have only 0.62 percent of corporate profit margins while the remaining one-third have 6-10 percent profit margins.
The report which took nearly one month of investigation was submitted by the association in mid March to the State Council. Such constant efforts generated hopes that the Government would pullback export tax rebates, providing a buffer space to the industry.
Policy makers did not examine these blatant circumstances before formulating the policies. However, after recent discoveries, the Government is likely to take decisions in favor of the textile industry.
It was in early March that China Textile Industry Association made market research into 6 provinces discovering that under the ongoing appreciation of RMB, there is an increase in raw materials and labor costs and lowered export tax rebates. Besides, two-thirds of the textile enterprises have only 0.62 percent of corporate profit margins while the remaining one-third have 6-10 percent profit margins.
The report which took nearly one month of investigation was submitted by the association in mid March to the State Council. Such constant efforts generated hopes that the Government would pullback export tax rebates, providing a buffer space to the industry.
Policy makers did not examine these blatant circumstances before formulating the policies. However, after recent discoveries, the Government is likely to take decisions in favor of the textile industry.
Fibre2fashion News Desk - China
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