Export tax rebate rate for fasteners may increase to 13%

In view of the current difficulties in the development of the fastener industry, the China Federation of Machinery Industry proposed to the competent authorities that the tax rebate rate for the fastener industry should be raised from the current 5% to 13%. It is reported that this proposal was put forward at the seminar organized by the Ministry of Industry and Information Technology in the first three quarters of 2012 on the analysis of the industry's operational situation.

It is understood that the export tax rebate rate for the fastener industry has not changed since it was lowered from 13% to 5% since July 1, 2007. The cost of production and operation of the company is continuously rising and the already meager profit margin is further increased. compression. In particular, since 2012, due to changes in the international environment, the export volume of fasteners has been “double reduction in volume and price” and business operations have become more difficult.

The industry believes that due to the current EU debt crisis has not yet passed, the global economic recovery is still full of variables, while Europe and the United States is the main export market for fastener companies, therefore, the international situation facing fastener exports is still not optimistic. According to reports, the current export companies are basically in a state of loss. In order to help the fastener companies tide over the difficulties, the federation suggested adjusting the export tax rebate policy and restoring the export tax rebate rate for fasteners and chains to 13%.

However, according to the author's understanding of the information, many export-oriented companies have a meager product profit and rely only on export tax rebates to earn a certain amount of funds. With the continuous deterioration of the international economic environment and the continuous appreciation of the renminbi, enterprises that rely on export tax rebates have not been able to adapt well to market competition. As the saying goes, “saving the poor does not save the poor”, so I believe that the general increase in the export tax rebate rate for companies that are “sick and ill” is tantamount to “drinking and quenching thirst”. Instead of raising the rebate rate for them to survive, it is better to let them participate in market competition and win the fittest.

Therefore, the author believes that in addition to raising export tax rebates, the association and the government have better ways, such as choosing leading enterprises, innovating enterprises to support them, improving the service level of regional fastener industry, creating a favorable industrial development atmosphere, and so on. At present, the development of the fastener industry is in an awkward situation.