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Business / Economy

New tax rebate policy will help exports

By Qiu Quanlin in Shenzhen, Guangdong (China Daily) Updated: 2014-04-01 09:39

"Chinese manufacturers are still facing difficulties as they lose their traditional competitive edge in pricing because of higher production and labor costs, intensifying competition and the fluctuation of the yuan exchange rate," said Xiao.

China's exports were down by 18.1 percent year-on-year to $114.1 billion in February, the biggest decline since the global financial crisis in 2008, according to the General Administration of Customs.

"Under the current trade situation, Chinese exporters need more efficient services to make profits to ward off the negative impact brought about by a decreasing overseas demand for Chinese goods," Xiao said.

Following the new policy, Xiao expects more manufacturers, especially small and medium-sized ones, will have more confidence to ship goods overseas.

"More tax rebates will be granted through the service trade platform because there will be more exporters looking for services to ward off declining business. The policy will help boost trade growth," Xiao added.

Zhang Xingming, general manager of Huidong Youme Shoes Factory, spoke highly of the trade service of helping SMEs to gain export tax refunds.

"For us small exporters it usually requires increased labor costs to qualify us to apply for the tax rebate by ourselves," said Zhang.

In the past, a company had to wait for at least three months to be finally refunded by taxation authorities for a single business trade, according to Zhang.

The new policy will help ease the rising workload burden for the government because there are more Chinese manufacturers shipping products overseas, said Wang Jian, a professor with the Beijing-based University of International Business and Economy.

"Global trade has greatly changed following the boom in e-commerce development. The fast-developing trade demands a more efficient public service," Wang said.

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