Textile Tax Rebate Amendment Relies on Market
Source: Fibre2fashion Date: 2007-04-12
On talking about the issue of China’s huge trade surplus, Vice Minister of Commerce Gao Hucheng said, the trade surplus in March would show significant change compared with the previous two months.
He pointed out that the higher trade surplus in the first two months was due to the Spring Festival holiday this year being later than previous years, which resulted in a faster growth of trade surplus in the first two months. But that did not mean China’s trade surplus would expand further this year.
Gao Hucheng foresaw that growth rate of China’s trade surplus in the first quarter could not continue the rapid growth momentum in the first two months. He also said that China’s foreign trade development this year would head in the direction of expanding imports, changing the mode of production for exports, and increasing the added value of products.
In January and February this year, China’s trade surplus reached US $15.88 billion and $23.757 billion, respectively. It set $177.47 billion last year, a new record high.
According to the latest survey, most analysts expect China’s trade surplus will be more than $20 billion in March.
Regarding export rebates of garment and textile industries, Gao Hucheng said, “Judging from the current situation, everything is normal, the next step of readjusting export tax rebates will be determined according to market conditions.”
Last adjustment was in September 2006. Currently export tax rebatefor textiles is at 11 percent, and for clothing is at 13 percent.
