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Textile sector to gain from hike in export tax rebate
14 Nov '08
2 min read
Nearly 1,120 categories of export products from Zhejiang Province will benefit from the changes brought about in the export drawback policy. Since the province has a very large number of exporting labour intensive industries like textiles, clothing, toys, plastic products, furniture, sewing machines and tools industries, the fruits of the change are bound to percolate down and bring cheer to all and sundry.
From amongst the benefitting industries, the textile and clothing sector is expected to take the cake as this industry accounts for 90.4 percent of the total export value and as the latest export drawback rate on textile and clothing has been increased from 13 percent to 14 percent it will be the sector which will profit the most.
In the first three quarters of this year, textiles and clothing exports from Zhejiang Province registered US $32.18 billion, up 21.2 percent year-on-year. The increase of export tax rebate rates covers nearly 12,300 export enterprises in textiles and clothing products in the province which account for 38.8 percent of all exporting companies.
It is estimated that one percentage point increase in export tax rebate rate will help textile and clothing industry gain 0.07 Yuan from export drawback against one dollar of exports. This new hike in rebate rates on textile and clothing exports will help companies from the sector in Zhejiang Province gain 520 million Yuan from exports in November and December alone.
When coupled with the increase in export drawback on textile and clothing from 11 percent to 13 percent in August this year, these companies are expected to garner a windfall amount of 3.5 billion Yuan from export drawback in the whole year, as a result of the two hikes in export tax rebate rates.
From amongst the benefitting industries, the textile and clothing sector is expected to take the cake as this industry accounts for 90.4 percent of the total export value and as the latest export drawback rate on textile and clothing has been increased from 13 percent to 14 percent it will be the sector which will profit the most.
In the first three quarters of this year, textiles and clothing exports from Zhejiang Province registered US $32.18 billion, up 21.2 percent year-on-year. The increase of export tax rebate rates covers nearly 12,300 export enterprises in textiles and clothing products in the province which account for 38.8 percent of all exporting companies.
It is estimated that one percentage point increase in export tax rebate rate will help textile and clothing industry gain 0.07 Yuan from export drawback against one dollar of exports. This new hike in rebate rates on textile and clothing exports will help companies from the sector in Zhejiang Province gain 520 million Yuan from exports in November and December alone.
When coupled with the increase in export drawback on textile and clothing from 11 percent to 13 percent in August this year, these companies are expected to garner a windfall amount of 3.5 billion Yuan from export drawback in the whole year, as a result of the two hikes in export tax rebate rates.
Fibre2fashion News Desk - China
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