Export Rebate Rate For Footwear Industry Increased In December

After the 120 billion yuan VAT pformation was fully rolled out, the second step of tax reduction was finally finalized.

Since December 1, 2008, the export tax rebate rate of 3770 products has been raised again, mainly involving labor-intensive products, electromechanical products and other products with greater impact.

The Ministry of Finance and the State Administration of Taxation announced the adjustment and adjustment of 3770 commodities yesterday evening.

The tax rebate rate of forest products increased from 5% to 9%; the tax rebate rate of some moulds and glassware, such as metal extrusion dies, increased from 5% to 11%; the tax rebate rate for some aquatic products such as shrimps and frozen crabs increased from 5% to 13%; the tax rebate rate for goods such as bags, shoes, hats, umbrellas, furniture, bedding, lamps and clocks and watches was increased from 11% to 13%; the tax rebate rates of commodities such as toothpaste and other non-ferrous metal processing products, such as toothpaste, stone and aluminum strip, were increased from 5% to 9%, respectively, and the tax rebate rates of some mechanical and electrical products, such as agricultural pumps, motorcycles, bicycles and household appliances, were increased from 5% to 9%, respectively. The export tax rebate rate increase is mainly as follows: part of rubber products, main body or all of them are made of artificial fast-growing timber.

This is the third time this year that China has raised the export tax rebate rate, which has expanded considerably over the previous two years.

Compared with the first two times, the 3770 products adjusted for export accounted for 27.9% of the export products.

In November 1st, there were 3486 products in the second adjustment, with only 25.8% of the adjustment. At that time, there were 1090 kinds of export tax rebates related to our province, involving more than 4600 enterprises in our province.

Fuzhou customs officials believe that the successive improvement of export tax rebate rate will give play to the advantages of the policy combination, which will greatly promote the further expansion of exports and enhance the confidence of the relevant enterprises.

Despite the multiple negative factors at home and abroad, the export volume of our province increased by 20.2% from 1 to September this year, higher than the expected 7.2 percentage point.

The export enterprises in Fuzhou generally believe that in the context of the decisive role of external demand, raising the export tax rebate rate may be difficult to change the overall status of exports, but to a certain extent, it can relieve industry pressure.

This year, the export tax rebate rate of footwear industry, including bags, shoes and hats, has increased from 11% to 13%. This is the first time that China has adjusted the export tax rebate rate of footwear industry for the first time this year.

The increase of export tax rebate rate directly reduces the cost of enterprises and increases the profits of enterprises, which is most effective for enterprises.

For export-oriented enterprises, according to the static calculation, the export rebate rate rises by one percentage point, which is equivalent to directly pforming the total export volume of the general trade into 1% profits.

However, the export rebate rate of textile and garment has not been adjusted. But after the first two adjustments this year, the export rebate rate of textiles and clothing has reached 14%, which is 1 percentage points higher than that of shoes and hats.

The textile and garment industry has accumulated 3 percentage points through the two increase in the export tax rebate rate, which can increase the profit of our province's textile and garment industry by about 1 billion 100 million yuan a year.

The biggest increase reflects the "growth guarantee". The experts pointed out that the increase in export tax rebates is at least a short-term positive.

In the short term, the increase in the export tax rebate rate will have a direct positive impact on the industry's profits and exports, especially for the export oriented SMEs who are on the verge of collapse.

In fact, in 1995 and 1996, the export tax rebate rate dropped from 11%, 13% and 17% to 3%, 6% and 9% respectively. At that time, the loss and export of textile industry also saw a significant decline. Finally, the impact of the textile industry was alleviated by raising the export tax rebate rate.

From 2006 to August 1st this year, China has implemented the export tightening policy for two years, and the export tax rebate rate has been gradually reduced.

Chen Yong, a macroeconomic analyst at Haitong Securities, also believes that the export tax adjustment is part of the recent intensive policy of "ensuring economic growth".

Since 2004, China's export tax rebate policy has the largest number of tax regulations and the most vigorous efforts, reflecting the serious concerns of the top policy-makers in the future export situation.

In addition, labor-intensive industries are the key areas to raise the export tax rebate rate, reflecting the high-level consideration of the employment situation.

Yang Zhiyong, deputy director of the fiscal and Taxation Research Center of the Chinese Academy of Social Sciences, said that after the adjustment in December 1st, the export tax rebate policy will still have room, and the export tax rebate rate can be raised to 17%.

It is learnt that at present, the value-added tax is levied at 17% of domestic commodity production, and the tax rebate rate of export commodities is generally lower than this standard.

The state regulates the total import and export volume through adjusting the export tax rebate rate.

However, a textile enterprise in Fuzhou believes that the state raises the export rebate rate of some products, which can alleviate some of the business pressure of enterprises, but enterprises can not get all the benefits. Foreign businessmen will take advantage of the opportunity to win a share of the market. Often, this is the reason why enterprises should reduce profits, especially when the market is not good, even if prices are reduced, orders will not be much.

In addition, the biggest problem now facing is the decline in demand from outside, especially in Europe and the United States. Even if the tax rebate rate is raised to 17%, it will not change the trend of weakening demand in Europe and the United States in the short term.

Therefore, export-oriented enterprises should first consider industrial upgrading, improve bargaining power and value-added products, enhance brand awareness, rely on technology to increase their own innovation capability, expand profit margins and enhance international competitiveness, and try to develop products that meet domestic needs and vigorously expand domestic markets.

Reporter understands, pressure, at present, a batch of foreign trade and Fujian enterprises choose to take the initiative to adjust, for example, the network marketing, expand terminal mode and other enterprises in the successful use; another batch of enterprises chose to break arm to survive, abandon some industries, retain the core competitiveness of the strong profitability of the industry, tenaciously survived.

(8000) Yang Zhiyong said that the next step of tax reduction may be the adjustment of personal income tax collection.

At the meeting of the Ministry of Finance in November 11th, it was clear that we should further study the implementation of fiscal and taxation policies to expand consumption and increase consumer demand.

For this, it is obvious that personal income tax is included.

To reduce the personal income tax rate can directly increase the income of residents and stimulate consumption. Experts and academics have been calling for further improvement of the tax threshold.

Previously, the tax threshold has been adjusted several times, from 800 yuan to the current 2000 yuan.

To raise the tax threshold, Mao Yushi, an economist, thinks that when China established the threshold of 800 yuan in 80s of last century, the income of residents was very low, and the monthly income was only tens of yuan. Now the income of residents has increased substantially. At present, the tax threshold of 2000 yuan is too low, which should be raised to 8000 yuan.