CHINA has raised export tax rebates on toys, textiles and more than 3,000 other products, moving ahead on promises to counter a slump that is forcing many factories that produce for overseas markets out of business.
The export tax rebate on clothing and textiles will be raised to 14 percent from the current 13 percent, the Ministry of Finance said in a notice posted yesterday on its Web site.
The tax rebate on toys also will be raised to 14 percent, from the current 11 percent, it said.
The changes, which affect 3,486 types of products, or about one-quarter of all exports listed by customs authorities, take effect Nov. 1, the ministry said.
Most of the hikes raise tax rebates to between 9 percent and 13 percent. Products named in the list included everything from AIDS medication and steel wire used for appliances, to some types of plastics and machinery.
China''s export tax rebates date back more than 20 years to when the government began using them as an incentive for investment in export industries.
The rebates are part of a series of measures, most of them still not announced, that leaders say will be rolled out to help manufacturers weather falling orders and rising costs amid the world credit crisis.
Thousands of factories have already closed down, leaving workers without jobs or paychecks, especially in thin-margin, labor-intensive industries like toys, clothing and small appliances.
Toy makers have been especially hard-hit, with costs rising 60 percent since 2006 while contract prices rose only by an average of 10 percent, according to Toy Industry Association figures published yesterday in the State-run newspaper China Daily.
In July, the government raised rebates of value-added taxes on exports of textiles and clothing by 2 percentage points to 13 percent.
The export tax rebate on clothing and textiles will be raised to 14 percent from the current 13 percent, the Ministry of Finance said in a notice posted yesterday on its Web site.
The tax rebate on toys also will be raised to 14 percent, from the current 11 percent, it said.
The changes, which affect 3,486 types of products, or about one-quarter of all exports listed by customs authorities, take effect Nov. 1, the ministry said.
Most of the hikes raise tax rebates to between 9 percent and 13 percent. Products named in the list included everything from AIDS medication and steel wire used for appliances, to some types of plastics and machinery.
China''s export tax rebates date back more than 20 years to when the government began using them as an incentive for investment in export industries.
The rebates are part of a series of measures, most of them still not announced, that leaders say will be rolled out to help manufacturers weather falling orders and rising costs amid the world credit crisis.
Thousands of factories have already closed down, leaving workers without jobs or paychecks, especially in thin-margin, labor-intensive industries like toys, clothing and small appliances.
Toy makers have been especially hard-hit, with costs rising 60 percent since 2006 while contract prices rose only by an average of 10 percent, according to Toy Industry Association figures published yesterday in the State-run newspaper China Daily.
In July, the government raised rebates of value-added taxes on exports of textiles and clothing by 2 percentage points to 13 percent.
