Home / Knowledge / News / Textiles / Lowered tax rebates to adversely affect exporters

Lowered tax rebates to adversely affect exporters

16
Mar '07
Export tax rebates being lowered by two percent will have a direct impact on slender profit margins of enterprises.

According to statistics, from January to November 2006, sales revenue of China's textile industry was 2.168914 trillion yuan. Product sales cost marked 1.939518 trillion yuan. Product sales taxes and extra charges were 8.36 billion yuan.

This is translated into a gross margin (sales revenue - marketing costs-sales taxes and extra charges) of 221.036 billion yuan. Gross margins rate (gross profits/sales revenue) was 10.19 percent.

Based on the total profit amount of 76.763 billion yuan, the profit margins (total profit amount/sales revenue, also known as pre-tax profit) could be calculated as 3.53 percent.

Textile industry has already been an industry with thin profit. Reduced export rebates will further squeeze its poor profit margins.

Textile industry will be facing many favorable factors in 2007. China's textile and apparel would indicate some increase over the previous year, the estimated increase would be 10-15 percent this year compared to 22 percent in 2006 as the most critical export tax rebate being lowered by two percent and RMB revaluation by five percent.

The annual export value is expected to be US $158-165 billion in 2007.

In order to achieve sustained growth, and become bigger and stronger, textile industry must realize solid industrial upgrading. Textile enterprises will be apparently polarized in 2007. Those enterprises, which are not aggressive in making progress, will be eliminated.

Fibre2fashion, News Desk - China


Must ReadView All

European Commission proposes new EU GSP for 2024-2034 period

Textiles | On 24th Sep 2021

European Commission proposes new EU GSP for 2024-2034 period

The European Commission recently adopted the legislative proposal for ...

Pic: EURATEX

Press Release | On 24th Sep 2021

EURATEX president Paccanelli urges for support to tackle energy crisis

European Apparel and Textile Confederation (EURATEX) has announced...

Pic: Shutterstock

Apparel/Garments | On 24th Sep 2021

UK competition watchdog to crack down on green fashion claims

To help businesses understand how to communicate their green...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Uniform designing is a numbers game

Textile Industry, Head honchos

Textile Industry
Head honchos

Occam's razor principle and purpose-driven innovations

Textile Industry, Head honchos

Textile Industry
Head honchos

Extension of RoSCTL to boost textile exports

Raiyan Islam,

Raiyan Islam

Founded in 1981 by Sayeeful Islam, Concorde Garments Group is a market...

Andrea Pelissero,

Andrea Pelissero

Located near Milan, Italy, and with 50 years of experience in the textile...

Rishav Bajoria & Subham Sengupta,

Rishav Bajoria & Subham Sengupta

Launched in October 2020, the Gumti app could not have come at a more...

Shujaul Rehman, Garware Technical Fibres

Shujaul Rehman
Garware Technical Fibres

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Tiasha Renganathan, Twinery Innovations by MAS

Tiasha Renganathan
Twinery Innovations by MAS

Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

<b>Anjali Bhaskar</b> has an experience of 12 years in the fashion...

Reynu Taandon, Label Reynu Taandon + Nikhita

Reynu Taandon
Label Reynu Taandon + Nikhita

Renowned womenswear designer <b>Reynu Taandon </b>has been serving the...

Megha Kumari & Jigar Mali, Label Megha & Jigar

Megha Kumari & Jigar Mali
Label Megha & Jigar

New Delhi based label Megha &amp; Jigar blends India's unique handcrafts...

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

Leave your Comments


September 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search