The Chinese government has increased benefits of export tax rebates available to exporters from labour intensive sectors like textiles and machinery.
The benefits have been hiked because, despite the textile sector drawing 13 percent and machinery industry enjoying 17 percent export rebate, they have not been faring well.
Earlier, companies could apply for tax refund under VAT only after 90 days of declaration of exported goods. With the new adjustment, firms can apply for tax returns in the subsequent month, after the month in which the goods were exported. This new benefit is applicable till April 30.
The other sector expected to be benefited is the machinery sector, which includes the textile machinery industry.
The new adjustment has abolished the provision of 12 months corporate audit period for small manufacturing enterprises. This adjustment will fully provide free tax rebates for new business of export companies and small export enterprises.
Fibre2fashion News Desk - China