Export tax rebate of T&G sector to increase from April

27 Mar '09

2 min read

Premier Mr Wen Jiabao chaired an executive meeting of the State Council on March 25. The meeting examined and approved in principle the views of all, on speeding up the development of Shanghai's modern service industry and advance manufacturing activities as well as build an international financial center and a big modern port.

The meeting also decided that from April 1, 2009 onwards, the state will increase export tax refund rates for textiles, garments, light industry, iron and steel, nonferrous metals, petrochemicals and electronic information products, but the meeting did not announce the specific increase of the export tax rebate rate.

According to export data released by the General Administration of Customs, in February, China's exports dropped 25.7 percent from the same period last year. The export figures have not only declined for four consecutive months, but also set the largest one-month drop in history from the Chinese export industry.

In January and February, China's foreign trade which includes imports and exports registered US $266.77 billion, a year-on-year decrease of 27.2 percent. Of this exports touched $155.33 billion, down 21.1 percent and imports $111.44 billion.

Beginning from the second half of 2008, the Chinese government has increased export tax rebate rate on five separate occasions and the latest to take place in April, will be the sixth adjustment. According to government sources, export tax rebate rate for textile and garment is very likely to increase to 17 percent.

Fibre2fashion News Desk - China

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