The increase in the export tax rebate rate was lower than expected, and textile companies all said that it “does not quench their thirst”

On October 21, the Ministry of Finance and the State Administration of Taxation issued the “Notice on Increasing the Export Rebate Rate for Some Commodities”, clarifying that from November 1, some labor-intensive, high-tech, and high value-added products will be appropriately increased. The export tax rebate rate for commodities will be increased to 14% for some textiles and clothing. This is the second time since 2008 that the government has raised the export tax rebate rate for textiles and clothing. On August 1, 2008, the export tax rebate rate for some textiles and clothing was increased from 11% to 13%. However, many textile companies expressed caution about the positive effects of the increase in export tax rebate rates on companies.
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​​​​​Relevant people from leading shares that own many well-known domestic clothing brands said that the export tax rebate rate increase this time is very small, and it will not significantly promote the company’s benefits. It only reflects the policy orientation, and “the signal significance is greater than the actual significance.” An official from Haixin Shares, another listed company in the textile industry, said that the impact of this policy on the company is being calculated and there is no current manifestation. When the export tax rebate rate was raised by 2 percentage points, Haixin Co., Ltd. said that the adjustment of the export tax rebate rate could alleviate operating pressure to a certain extent. However, due to the continued appreciation of the RMB, the increase in raw material and labor costs and many other factors, it is expected to have an impact on the company. There will be no significant impact on 2008 results.
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Some owners of small and medium-sized textile and clothing enterprises in Wenzhou and Hangzhou, Zhejiang, said that there are too many factors that affect the decline in corporate efficiency and even losses. The export tax rebate rate can only alleviate some of the pressure. Major factors such as market shrinkage and rising raw materials are still hampering the development of enterprises.
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            The increase is too cautious
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In response to the increase in the export tax rebate rate, many industry experts said that the government’s adjustment is too cautious and may weaken the effect of the policy.
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Industry insiders said that since maintaining stable export growth is a top priority, why is the increase this time only 1 percentage point, the intensity is so limited, and the means and purposes obviously do not match.
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Estimated data from industry websites believe that if the export tax rebate rate is increased by 1%, the tax rebate for the textile industry can reach about 5 billion yuan, and at the same time, the textile industry can increase profits by about 4 billion yuan. Ping An Securities District Zhihang believes that if the export tax rebate rate is increased by 1%, that is, 1% of the company’s total export revenue will be directly added to the company’s total profit, it will increase the net profit of textiles and clothing in 2008 by approximately 541 million yuan, and increase the net profit in 2009 by 6.626 billion yuan. billion.
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Industry insiders believe that the export tax rebate rate adjustment is far from what they think can be raised to 17%, which is lower than the 15% generally expected by the industry. It can only be said that the symbolic significance is greater than the actual significance. Industry insiders said that in the context of huge changes in the international economic situation, textile companies in survival difficulties urgently need not only confidence, but also more targeted and powerful policy measures. Ou Zhihang said that the 1% increase in the export tax rebate rate is smaller than the 2% increase proposal submitted by the Textile Industry Association and the Ministry of Commerce in the early stage. It will not have much effect on increasing industry profits and has limited positive effects.
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            The purpose of the policy is to “protect survival”
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Zhang Bin, an analyst at Sinolink Securities, said that the increase in the export tax rebate rate does not have much significance in improving the efficiency of large and medium-sized enterprises. Its main role is to ensure the survival of small and medium-sized enterprises, thereby ensuring employment and economic stability, turning a “hard landing” into a “soft landing” “.
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Zhang Bin said that even if the export tax rebate rate is raised to 17%, it will not change the trend of weakening demand in the European and American markets. In Zhang Bin’s view, market shrinkage is the main influencing factor on top of tax rates, RMB and other policies. Zhang Bin believes that the purpose of this policy is to protect small and medium-sized enterprises and slow down the wave of production suspensions of small and medium-sized enterprises that occurred in the early stage.
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Zhang#p##e#bin said that for large enterprises, including listed companies, since orders from small and medium-sized enterprises after bankruptcy are transferred to large enterprises, maintaining a certain profit in the future will not be a big problem, but gross profit margin, industry efficiency, export The downward trend in growth cannot be changed by export tax rebate rates. The situation of small and medium-sized enterprises is even less optimistic. They are facing survival problems caused by the loss of the market. Therefore, the introduction of this policy is a “life jacket” for small and medium-sized enterprises.
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Ou Zhihang believes that the increase in the export tax rebate rate is not conducive to the elimination of backward enterprises and the upgrading of the industrial structure. Moreover, because foreign businessmen will reduce the profits of domestic export enterprises by placing orders at lower prices, industry profits have still not been well alleviated. Therefore, the export tax rebate rate is important forFor the textile and garment industry, it is treating the symptoms rather than the root cause.
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The rule of the root cause is in domestic trade and brand
 
Relevant people from Longtou Shares said that the difficulties faced by the textile industry will be difficult to eliminate for a long time to come, especially in terms of rising labor costs and raw material prices. Therefore, the main way for a company to ensure profits lies in its own expansion rather than policy advantages.
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At present, the company has a similar proportion of business revenue in the two markets of export and domestic trade, but the profit of the latter is significantly higher than that of the former. In the export field, it does more processing business with lower profits, and in the domestic trade field, it has its own brand and high added value. Value product. Therefore, the company will increase its efforts to improve profitability in the domestic trade market in the future, focusing on quality rather than “quantity.”
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Zhang Bin believes that 2007 was the last glory of the rapid growth of foreign trade in the textile industry. Due to the rapid rise in the comprehensive cost of the domestic textile industry, the global textile industry will inevitably shift to emerging regions such as India in the future. The way for the domestic textile industry to save itself lies in the steady increase in the proportion of domestic demand and the acceleration of industry integration, as well as learning from Japanese counterparts and expanding new profit models such as “middlemen” and “retailers” in the industry.