Himfr.com Reports Chinese Chemical Fiber Industry Benefits from Increasing Tax Refund

clincrease in pre-tax profit rose to 19.2 billion yuan.
Recently, China’s Ministry of Finance andHimfr.com, the leading third generation online
the National Tax Administration announced anbusiness-to-business (B2B) platform, believes that
increase in the textile, clothing export tax refundthe real situation facing enterprises is not so
rate from 11 percent to 13 percent. The exportoptimistic, as historical experiences from the past
tax refund rate of certain bamboo products willfew years suggest changes of the export tax
remain at 11 percent; with the new tax refundrefund rate is not entirely born by the exporters.
rates being implemented from August 1, 2008.Due to the increasing export tax refund rate,
In accordance with the export tax refund policy,foreign investors will inevitably reduce product
non-tax-rebate part will be directly included in thepricing. estimates that 50% of the change in the
cost of production. Theoretically speaking, thetax refund rate can pass on price adjustments.
profit increasing rate will be up with the increasingThe export Tax refund rate increased 2%; the
rate of the export tax refund. Based on 2007pre-tax profits of textile can relatively increase
data, the export tax refund rate increased 2%,10.8%.
and in 2007 the textile and apparel industry-wide