Home / Knowledge / News / Textiles / Export enterprises to profit from adjustments in tax rebates
Export enterprises to profit from adjustments in tax rebates
04
Aug '08
The Ministry of Finance, State Administration of Taxation, recently issued a circular announcing the adjustment of export tax rebate rate on textiles, pesticides and other commodity products with effect from August 1, 2008.

The ordinance released declared an increase in export tax rebate rate on part of textiles and clothing from 11 to 13 percent. Besides those on bamboo products were also raised to 11 percent.

In fact, it has to be noted that for every one percentage point increase in export tax rebate rate, a equivalent corresponding percentage will be generated by way of growth in profits. It is therefore bound to bring in a direct and swift positive influence for businesses.

Statistics show that in 2007, domestic textile and apparel exports amounted to US $167.9 billion, of which general trade accounted for 70 percent. When calculated at a rate of 10 percent in growth rate, total exports of textiles and garments for the year 2008 is estimated to reach $184.7 billion, of which, general trade exports many reach $130 billion.

As such, a 2 percentage point increase in export tax rebate rates will fetch an additional profit of $2.6 billion to the textile industry. Based on the conversion level of the current exchange rate, corporate profits are expected to soar by 17.69 billion yuan.

Cumulative profits of the textile industry in the past five years have recorded a double digit sales growth. In 2006-07, increase in both total annual profits and operating income exceeded 20 percent. Besides, in the first five months of 2008, an increase of 8.37 percent was registered in profits of the textile industry while growth in sales revenue touched 17.38 percent. Assuming a 10 percent rise, sales income of the sector in 2008 will come to 3.2143 trillion yuan while profits will reach 127.6 billion yuan.

It hoped that with these crucial adjustments, the textile and garment industry of China would be able to remain firm in the international market against the stiff competition from other countries across the world.

Related news

Fibre2fashion News Desk - China

Must ReadView All

Apparel/Garments | On 28th Feb 2017

Delta Galil's Q4 operating profit jumps 80%

In the three months to December 31, 2016, operating profit at apparel ...

View of YiwuTex 2016; Courtesy: YiwuTex

Textiles | On 28th Feb 2017

Smart knitting system to grace 18th YiwuTex 2017

The thematic functional knitting machinery zone at the 18th YiwuTex...

Textiles | On 28th Feb 2017

Over 100 exhibitors expected to participate in IATF

Over a 100 exhibitors are expected to showcase their products at the...

Interviews View All

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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
February 2017

February 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