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Tax rebate hike for textile export effective from Feb 1

(Xinhua)
Updated: 2009-02-05 22:49

BEIJING -- China's policy to increase the tax rebate rate for textile and garment exports from 14 percent to 15 percent became effective from February 1, the Ministry of Finance said here on Thursday.

Undated file photo shows staff workers at a clothing factory in east China's Jiangsu. China's policy to increase the tax rebate rate for textile and garment exports from 14 percent to 15 percent became effective from February 1, the Ministry of Finance said on Thursday. [Agencies]

China has raised the export tax rebate rate for textiles three times since last August. The previous increase in November went up from 13 percent to 14 percent.

Related readings:  China raises garment, textile export tax rebate rate  Garment, textile export tax rebate raised to aid textile sector  Trade: Tax rebates hike for garment, textile exports  China to discuss support plans for machinery, textile industries

An executive meeting of the State Council (Cabinet) announced the policy change on Wednesday, saying the move would reduce exporters' costs and support the textile industry.

The textile sector is the country's traditional pillar industry and enjoys an advantage in international competition.

However, the textile industry suffered severe difficulties since last year.

Figures from the country's customs showed textile and garment export of China was US$185.17 billion in 2008, up 8.2 percent year-on- year, but the growth rate was 10.7 percentage points lower than in 2007.

Experts from the Commerce Ministry (MOC) attributed the downturn to yuan's appreciation, industry liquidity shortage and production material cost surge.