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Home / Knowledge / News / Textiles / Textile biggies lash proposed rise in export drawback

Textile biggies lash proposed rise in export drawback

24
Oct '08

The Ministry of Finance and State Administration of Taxation recently announced that export drawback rate on some products will be raised from November 1, 2008. Among them, export drawback rate on exports of textiles, and clothing will be increased to 14 percent.

This is the second time that the Government has raise export tax rebate rate on textile, clothing this year. On August 1, 2008, export tax rebate rate for part of the textile, clothing was raised from 11 percent to 13 percent.

However, the industry biggies are not satisfied with this move. They expressed that raising export rebate rate earlier was slight relief but no major help to the industry. Besides, this proposed raise is too small and will its effect will be negligible.

Most SME traders from Wenzhou, Hangzhou, Zhejiang and other key trade regions say that there are too many problems that are making textile industry struggle and just raising drawback rate is not the solution. Government needs to take more aggressive steps and ensure the profitability for the exporters.

Fibre2fashion News Desk - China

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