Jiang Hui, president: China's textile and clothing industry is overtaxed

On August 13th, Chang Huihui of the China Chamber of Commerce for Import and Export of Textiles said in Foshan that the tax burden on Chinese textile and garment companies is too heavy and it is also higher in the world.

“According to our statistics, the average tax burden on China's textile and apparel companies is about 35%, which is also higher in the world.” Jiang Hui said on the 13th at the 2013 Suida Sustainable Development Forum that despite this, many companies What is afraid of is not a tax. “Taxes are stipulated by the state, and how much tax will be paid on this tax. However, various types of 'fees' that make up a lot of local names can make businesses too busy.”

According to reports, in 2009, Guangdong canceled 100 administrative fees and reduced the company’s annual expenditure by 2.4 billion. Jiang Hui said that various kinds of “fees” have caused companies to simply fail to figure out how much to pay in a year. For example, he once complained that a business owner complained that the (government) did not tell me how much the fee was cancelled. Just tell me how much I would like to pay, because I cannot figure it out.

According to a survey report on the tax burden of Chinese textile companies (2011 data), industrial enterprises not only pay a value-added tax of 17%, pay income tax at a profit of 25%, and bear the costs associated with resource consumption and environmental protection. To varying degrees, taxes on urban construction tax, local education surcharges, disabled persons, and real estate taxes, stamp taxes, and taxes on vehicles and boats shall be paid in proportion to the turnover tax rate.

Jiang Hui said that heavy taxes and fees have greatly dampened the enthusiasm of entrepreneurs in running a real economy.

According to industry statistics, in 2012, the gross value of China's textile industry was close to 6 trillion ***, accounting for 11.5% of the country's total industrial production; direct employment was absorbed by more than 20 million; textile and apparel exports were 254.98 billion US dollars, a record high. At present, China already has the world's largest textile industry system with the most complete industrial chain, and is the world's largest producer and exporter of textiles and garments.

“China is a big textile country, but it is not a strong country.” Jiang Hui said that as a labor-intensive industry, the textile industry enterprises are facing rising labor costs, the continuous appreciation of the ***, and structural adjustment pressures. At the same time, the lack of talent, funds, product innovation, lack of marketing channels, and production management can not keep up with the requirements, the survival of textile industry enterprises is increasingly difficult.

Some surveys have shown that companies generally believe that the best embodiment of government support is to “reduce the tax burden” and account for 77% of the companies surveyed. Another survey of small businesses also showed that business’s hope for the government is to reduce the burden, reduce the tax burden and solve the problem. Tax cuts are more urgent than **.