The export tax rebate rate is raised, but textile companies still have a way to go before they can smile
The Ministry of Finance and the State Administration of Taxation announced on the 21st that they will increase the export tax rebate rates for 3,486 commodities starting from November 1, 2019. Among them, the export tax refund rate for some textiles and clothing will be increased to 14%; the export tax refund rate for some toy products will also be increased to 14%; the export tax refund rate for high-tech and high value-added commodities such as anti-AIDS drugs will be increased to 9% to 9%. Varies from 13%. It is understood that in August this year, the government increased the export tax rebate rate for textiles and clothing from 11% to 13%. This is the second adjustment to the export tax rebate rate for textiles and clothing this year. It is also the first adjustment to the export tax rebate rate in my country since 2004. A broad and powerful one.
Business difficulties can be alleviated to a certain extent
“This is expected, because the government has seen the current economic situation and is working to solve the current problems of enterprises.” Yesterday, when I learned the news, Jiang Linfeng, general manager of Zhejiang Kaixiya Clothing Co., Ltd. Not surprised. In fact, he had predicted as early as a month ago that the textile and clothing export tax rebate would be increased by 1 to 2 percentage points. But what he didn’t expect was that the export tax rebate rate adjustment would be so wide-ranging. Since the beginning of this year, affected by factors such as the financial crisis, import and export textile and garment enterprises are facing unprecedented difficulties. It is understood that two months ago, the exchange rate of the euro against the renminbi was still 10.66 yuan, but it has fallen to 8.86 yuan in just two months. Zhejiang Kaixiya Clothing Co., Ltd. is one of the largest silk export companies in Zhejiang. Its annual sales reached 6.4 billion yuan last year, of which foreign trade accounted for 99%. Jiang Linfeng said: “If the current situation continues, the company’s profits will drop by at least 30% compared with last year. If the economic environment continues to worsen, a drop of 50% is very possible. This is for a company with sales of more than 60 For an enterprise worth over 100 million yuan, that’s a big deal.” Zhejiang is a major foreign trade province. Hangzhou’s total self-operated import and export volume from January to September this year alone reached 29.69 billion U.S. dollars, and clothing and clothing accessories accounted for 2,724.31 million U.S. dollars. , textiles accounted for US$2.50051 million, accounting for approximately 26% of total exports. During the interview, the reporter found that many companies are facing the same problems as “Kaixia”. Most foreign trade companies welcome this adjustment and look forward to it easing their current operating difficulties.
In fact, it is difficult for them to laugh. Most companies hold the mentality of “an increase is better than no adjustment.” After all, a positive policy is always positive.
It will be beneficial to foreign trade companies in the short term
On August 1, the export tax rebate rate for some textile and apparel products was raised from the original 11% to 13%. However, the effect did not seem to be ideal; on November 1, the government again increased the export tax rebate rate by another 1 percentage point. Starting from next month, some textiles and clothing will implement a 14% export tax rebate rate. “On the one hand, this shows that the government has not given up. On the other hand, it also shows that export tax rebates are only a stopgap measure.” Relevant experts analyzed this. Although the export tax rebate rate did not reach the “expected” 15% or 17%, Hangzhou’s textile and garment enterprises said that the introduction of this policy was a good thing. “It is definitely a good thing. It will offset part of the cost pressure of enterprises, make life a little easier for some small businesses with operating difficulties, and at least alleviate their urgent needs. This is like a ‘timely rain’.” This is how Jiang Linfeng views this time policy adjustment. However, many people also said that under the current circumstances, textile and garment enterprises are having a difficult time, because the biggest unfavorable factor still comes from the exchange rate. The increase in export tax rebates is beneficial in the short term, but it is not a long-term solution in the long term. “The euro has depreciated and the U.S. dollar has shrunk. Since the beginning of this year, the RMB has appreciated against the U.S. dollar by more than 7%. If you think about it, one is 7% of sales and the other is 1% of costs. The impact of the former must be greater.” A clothing foreign trade company The person in charge of the company told reporters this.
Treat both the symptoms and root causes to deal with risks
“In the long run, these support policies are mainly to help companies in difficulty tide over difficulties. The key still depends on the companies themselves. To maintain sustainable development, Hangzhou’s foreign trade companies must take necessary measures to address both the symptoms and root causes. For example , pay attention to product research and development and design, integrate and utilize advantageous resources, reduce costs, increase the added value and market share of products, thereby improving the international competitiveness of foreign trade export products.” said a staff member of Hangzhou Foreign Trade and Economic Cooperation Bureau. It is understood that the Hangzhou Municipal Government has seen the current situation and is working on a series of guidance plans, and has launched the “Hangzhou Five-Year Cultivation Plan for Growing Small and Medium-sized Industrial Enterprises (Gazelle Plan)”. The “Plan” shows that the government will further strengthen funding and rewards for growing small and medium-sized enterprises, further improve the financing environment for small and medium-sized enterprises, strengthen the construction of service systems for small and medium-sized enterprises, promote independent innovation of enterprises, and increase support and rewards for credit guarantee institutions. Improve the enterprise’s ability to resist risks.
In response to the increase in the export tax rebate rate for some products, relevant experts remind the majority of foreign trade export enterprises: It is necessary to arrange for the export of goods after November 1 as much as possible, and the relevant contracts, quotations, and Sort out the export situation and adjust relevant business strategies in a timely manner in order to comply with the new export tax rebate.��Proceed for tax refund.
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