Why Does China Adjust The Export Tax Rebate Rate Of Some Commodities?

Summary: in July 31, 2008, the Ministry of Finance and the State Administration of Taxation issued a notice to raise the export tax rebate rate of some textiles and clothing from 11% to 13%.

While raising the export tax rebate rate of some textiles and garments, we should abolish the export tax rebates for some products with high energy consumption, high pollution and resources. This reflects the difference, pressure and targeted solutions.

Since August 1st, the export rebate rate of some textiles and garments has increased from 11% to 13%.

This is the first pullback of China's export tax rebate rate since September 2006.

Improving textile export competitiveness

The head of the Ministry of Finance said that since the beginning of this year, due to the weakening of international market demand, the appreciation of RMB, and the increase of raw material prices and labor costs, textile export enterprises have seen more profits and slower export growth.

Data showed that textile and apparel exports in the first half of this year amounted to 83 billion 851 million US dollars, up 11.11% over the same period last year, down 6.4 percentage points over the same period last year.

In this case, it is necessary to adjust the financial policy appropriately to help enterprises through the difficulties and maintain a stable and rapid development of our foreign trade export.

The head of the Ministry of Finance said that raising the export tax rebate rate can directly reduce the export cost and increase the profits of enterprises.

This will help to lighten the export pressure faced by the textile industry, alleviate the shortage of funds caused by tight monetary policy to some enterprises, and play a positive role in improving the competitiveness of textile and clothing export.

In addition, textile and garment enterprises are labor-intensive industries, playing an important role in absorbing labor and employment.

Raising the export rebate rate can enhance enterprises' ability to resist market risks, support small and medium-sized enterprises to overcome the difficulties of business development, and further promote the employment of urban and rural labor force.

Differentiated treatment with guaranteed pressure

The head of the Ministry of Finance said that the goal of the Central Committee's economic work in the second half of the year is to continue to maintain steady and rapid economic growth, and strive to promote sound and rapid economic and social development. At the same time, we must continue to curb the excessive price rise and put the price increase in a reasonable range.

In order to achieve this goal, we must grasp the key points, tempo and intensity of macroeconomic regulation and control; we must insist on distinguishing treatment, maintaining pressure and solving problems flexibly and accurately.

While raising the export tax rebate rate of some textiles and garments, we should abolish the export tax rebates for some products with high energy consumption, high pollution and resources. This reflects the difference, pressure and targeted solutions.

The cancellation of export tax rebate of pine nuts, some pesticide products, some organic arsenic products, some coating products, some battery products, carbon anode, etc., belong to high energy consumption, high pollution, resource products.

Abolition of export tax rebates for these products is conducive to saving energy and reducing emissions, reducing waste of resources, and further promoting economic restructuring.