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Dwindling textile exports seek Govt support
31 May '08
2 min read
According to the export data of past four months, growth of textile industry has slowed down considerably. Since textile industry is one of the major pillars of economy, the experts are concerned and aggressively are attracting the attention of Government to this deteriorating situation.
The authorities are being urged to plan and draft support policies that, when introduced, will benefit the textile industry on the whole. With RMB appreciation re-entering an accelerated phase, the industry believes that July is probably the best time to promulgate related adjustment schemes.
It has been noted that weakening of exports is the most concerning issue. Thus, analysts advise that to improve the condition of export enterprises two measures need to be taken. Firstly, it is important to slow down the pace of RMB appreciation, in order to stabilize market scenario. Secondly, Government must pull back textile export tax rebate rates, reasonably.
Experts have pointed out that the pullback rate of textile export tax rebate rate and apparel export tax rebate rate should be different. They have proposed that the rebate-rate for textiles be pulled back to 13 percent and that for clothing be brought back to 15 percent. The proposal is awaiting approval of the State Council.
Another proposal that is yet to be approved, suggests a more flexible plan, so that export tax rebate and RMB appreciation form a correlated balance.
The authorities are being urged to plan and draft support policies that, when introduced, will benefit the textile industry on the whole. With RMB appreciation re-entering an accelerated phase, the industry believes that July is probably the best time to promulgate related adjustment schemes.
It has been noted that weakening of exports is the most concerning issue. Thus, analysts advise that to improve the condition of export enterprises two measures need to be taken. Firstly, it is important to slow down the pace of RMB appreciation, in order to stabilize market scenario. Secondly, Government must pull back textile export tax rebate rates, reasonably.
Experts have pointed out that the pullback rate of textile export tax rebate rate and apparel export tax rebate rate should be different. They have proposed that the rebate-rate for textiles be pulled back to 13 percent and that for clothing be brought back to 15 percent. The proposal is awaiting approval of the State Council.
Another proposal that is yet to be approved, suggests a more flexible plan, so that export tax rebate and RMB appreciation form a correlated balance.
Fibre2fashion News Desk - China
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