In this year's two meetings, "tax cuts" into many corporate call, the textile industry speaking more urgent. Many textile industry representatives of joint call during the sessions, in this year of the complex economic situation, textile enterprise especially small miniature enterprise life difficult, urgently awaits to further deepen the reform of the distribution system of cotton, for enterprise reduce tax burden.

Heavy tax burden or lead to less competitive

"As a deputy to the National People's Congress, I have question the cotton five times the bill." The National People's Congress, and hubei province cotton industrial group President of filial piety directors should be Ann said. He brought the cotton procurement processing of value added tax "high for the low buckle", is the industry to continue the topic of calling for many years, but still have little effect.

Cotton is the main raw material of cotton textile processing enterprise, accounting for more than 70% of the total production cost, long-term since, cotton textile enterprise cotton purchase deduction rate is 13%, and cotton textile products sell a value added tax rate is 17%, the difference shall be borne by the enterprise has been tax, which means that even if not appreciation, cotton textile products also should assume 4% of the taxes, the profit is very low the textile companies is definitely icing on the cake.

"From last year, and the whole cotton textile industry since, by the international situation and the influence of labor tension is very difficult, and 70% corporate profit margins in the below 0.7%, than bank interest is low still." He should be said Ann.

In addition, cotton import slippery must tax policy and the quotas also causes textile industry pressure increase the tax burden. Our country since 2005 to 894000 tons of cotton import quotas outside new implementation slippery must tax rate. That is in the import of cotton, when the international market price of cotton domestic low, automatically improve import rate, the import of cotton prices after with domestic cotton prices flat. Textile industry is the degree of marketization of very high industry, the product is the international market price, and the implementation of the tax must make the cotton price gradually widening price at home and abroad.

In recent years, our country cotton prices appear "roller coaster" for stability of MianJia began to carry out the temporary collection. By the end of February national accumulative total collection nearly 2.7 million tons of cotton, accounting for nearly forty percent of the annual production. Though the stability for the MianJia, but also to open the cotton price at home and abroad, and the domestic MianJia already over foreign MianJia more than 4000 yuan, this will make our country textile industry is in very adverse international competition environment.

"There is no doubt that sure is an influence, a simple example, last year the whole textile exports basic on the amount not increase. Such as the U.S. market, now of the towel with cotton products export drop, who added? India, increased, the reason is very simple, it cotton cheap." The Chinese people's political consultative conference, the national association of China's textile industry WangTianKai said.

He also said should be Ann, now cotton price competition doesn't have the international competitive advantage, a lot of price quote after go out, basically order is lost.

Enterprise for avoiding stress transfer to southeast Asia

In recent years, with domestic and international market environment changes, economic growth slow, and raw material cost, labor costs, the rise in the cost of land for enterprise, energy conservation and emission reduction pressure increase, the exchange rate of the yuan appreciation, etc and difficult since 2011 countries for inflation tighter monetary policy implementation of effects, resulting in textile enterprise's survival and development more difficult.

According to China's textile industry federation announced by the latest last year, according to the textile industry in our country main economic indicators are significantly slow growth momentum, export quantity and industry profit growth is the most outstanding decline, of which over the scale enterprise annual profit of 295.642 billion yuan, up 25.94%, or drop of 27.6% growth. At present, the industry over the scale enterprise starts at 80% or more, but some small and medium-sized enterprise exports micro processing enterprises difficulties are relatively obvious, the pearl river delta some industry cluster starts only 40% or so.

In multiple pressure, according to research at present not only a significant proportion of the international order to southeast Asia countries began to transfer, the domestic many large-scale textile clothing enterprise also appeared to southeast Asia the trend of the factory.

"Now we worry more of the problem is that in the long run, because the allocation of resources under the condition of different prices, there may be some enterprise the factory out. Cotton textiles in the cost of the proportion of the very high, accounting for more than 70%, there exist the problems getting, we are not without competition, is can have a competition, but because the somebody else's cotton cheap, so move out. Last month we specialized in southeast Asia see once, or not without worry." WangTianKai said.

He also said should be Ann, southeast Asia is really low cost, and the domestic worker wages basically high. "So many filial piety cotton clothing factory are displaced in the past, we have this idea, and to examine, but because we mainly is spinning and weaving, although it low wages, but efficiency is not high also, so there is no move in."

Another bad news is, March 5, GongShangBu cotton export ban issued by India and decided from now prohibits India cotton exports. India is now the second largest importer in cotton, and if the ban will be strictly implemented on domestic textile enterprise have great influence. In recent years, India has become China's textile exporters such as the opponent in the international market, especially in the low end of the textile, rely on cheap raw material costs of India and labor cost advantages, and constantly fretting of China international market share, India this also for improving terminal textiles in the competitiveness of the international market.

Representatives collective called on tax cuts

Textile industry is China's national economy and a pillar industry of traditional important people's livelihood industry, also is the international competitive advantage obvious industry. And textile industry in the number of small and medium-sized enterprises have absolute proportion, accounts for about 99% of the industry enterprise number, more than one thousand people to solve the employment. Because the main raw material is cotton, the development of the industry quality cotton producers can improve the relationship between income. Once this type of enterprise to shut too much, will have a direct impact on employment and social stability.

Many representatives Suggestions in this year continue to improve the state of the structural tax cuts, cotton textile priority of the specific conditions and actual difficulties, cotton textile industry to implement uniform tax, income by 13% deductible will cotton increased to 17%, and to sell a tax revenue, consistent, reduce enterprise taxes pressure.

"We very much hope that through the circulation system reform, can truly according to the principle of market allocation of resources, make the enterprise be free to buy cotton. As for how to protect the interests of farmers? I think that will find a way, as long as these principles are arranged that......." WangTianKai said. He suggested that should be further deepening the reform of the distribution system of cotton, emphatically adjust and perfect the release of cotton and expand import policies reservoir, and gradually reduce MianJia gap at home and abroad.

The National People's Congress, and company holding group ZhaoLinZhong board chairman put forward, hope from three aspects of the textile industry to ease the tax burden, apart from input deduction from 13% cotton increased to 17% outside, suggestion of textile industry in the artificial wage plan impose value added tax deduction when allowed; Allow the r&d investment in the textile industry, brand marketing costs included in the input VAT deduction limits, or part of the advantage of innovative enterprise and brand enterprise of VAT "as for namely return".

He should be Ann thinks, at present the tax cuts terms are very mature. "Our country after all these years of development, national strength have been enhanced, tax revenue last year after 10 trillion, and has been by the state transfer payment as the industry directly to the burden, let the industry itself to have the development. In addition, wen out to do, to improve the distribution of cake residents as well as industrial workers to improve this industry income, the worker's income than directly support, the industry, let the industry itself can solve the problem of workers."

Source "the Chinese textile nets"

Editorial: Ashcol