Textile Tax Rebate to Increase 15 Percent

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Feb. 5 – China will increase the tax rebate rate for textile and garment exports to 15 percent from the previous from 14 percent in an effort to support the textile industry and help exporters reduce costs.

The State Council did not specify when the new tax rebate rate will be applied. This is the third time since last August that export tax rebate rate were raised.

The government has also decided that it would provide funding technology upgrades for companies producing textiles or fibers, or operating in the textile printing and dyeing sector.

The central government has instructed local departments to provide financial support and insurance services to small and medium-sized textile plants.

Moreover, the government will soon announce measures to phase out obsolete capacity, eliminate energy-intensive, polluting equipment and technology, reports Xinhua.

Textile and garment makers will also be encourage to move operations to China’s central and western areas. Plans to support the textile industry will include boosting domestic consumption, implementing new production techniques, and promoting the use of textile products in other industries.

In 2008, China’s textile and garment exports amounted to US$185.17 billion, an increase of 8.2 percent from the previous year.