Tax Rebate Rate Rises, Panyu Garment Enterprises Export Revitalized

According to the notice issued by the Ministry of Finance and the State Administration of Taxation jointly issued in July 31st on adjusting the export tax rebate rate for some textiles and garments, the export rebate rate of some textiles and garments increased from 11% to 13% from January 1, 2008, and the export tax rebate rate of some bamboo products increased from zero tax rate or 5% to 11%, involving a total of 3190 commodities.

At the same time, the export rebates of pine nuts, some pesticide products, some organic arsine products, paclitaxel and its products, rosin, silver, zinc zero, some coating products, some battery products, and carbon anode have been abolished, and 38 kinds of commodities have been affected.

For commodities that involve the cancellation of export rebates, where an enterprise has already signed an export contract before August 1, 2008, and the price can not be changed, the export enterprise may register the contract with the local tax authorities responsible for export tax rebates before August 15, 2008.

The export contract for nuclear preparation is subject to the tax rebate rate before January 1, 2009 when it is declared for export.

Those who fail to file the overdue and the declaration of export after December 31, 2008 shall be carried out according to the adjusted export tax rebate rate.

The tax rebate rate adjustment will bring certain impact on Panyu District's annual export tax refund (Exemption) tax, which involves more textile and garment export enterprises.

According to statistics, the total export tax rebate rate of the total of 140 commodities in 210 enterprises in our district has been raised from 11% to 13%, and the export tax rebates of 2 kinds of commodities from 4 enterprises have been abolished.

Under the influence of the tax rebate rate adjustment, it is estimated that the export tax refund (Exemption) tax in Panyu District will increase by 50 million 570 thousand and 900 yuan compared with the same period last year.

Under the influence of various unfavorable factors such as RMB appreciation and rising raw material prices, the export tax rebate rate will raise the profit margins of the textile and garment industry to a certain extent. It is estimated that in the second half of this year, the export of our textile and garment enterprises will change to a slow trend in the first half of this year, showing a good momentum of growth.