China on Thursday announced tax relief for exporters of a range of textiles and garments that have been hard hit by slowing demand and the steady rise of the yuan's exchange rate.
From Friday exporters will receive a value-added tax rebate of 13 percent, up from 11 percent now, the State Administration of Taxation said on its website.
Zhou Dewen, head of a business association in Wenzhou, a big textile manufacturing centre in eastern China, called the announcement good news but said many companies had expected an increase in rebates to 15 percent.
"Anyway, it's better than nothing. Of course, by itself it's far from enough to fundamentally solve the current difficulties that manufacturers face," Zhou told Reuters.
China's exports of garments and accessories grew just 3.4 percent in the first six months from a year earlier, compared with a 20.9 percent increase in all of 2007.
For textile yarn and fabrics, annual growth picked up to 26.8 percent in the first half from 15.0 percent in 2007. Zhou said he expected the government to introduce more favourable policies, including a cut in corporate taxes and a loosening of lending curbs.
From Friday exporters will receive a value-added tax rebate of 13 percent, up from 11 percent now, the State Administration of Taxation said on its website.
Zhou Dewen, head of a business association in Wenzhou, a big textile manufacturing centre in eastern China, called the announcement good news but said many companies had expected an increase in rebates to 15 percent.
"Anyway, it's better than nothing. Of course, by itself it's far from enough to fundamentally solve the current difficulties that manufacturers face," Zhou told Reuters.
China's exports of garments and accessories grew just 3.4 percent in the first six months from a year earlier, compared with a 20.9 percent increase in all of 2007.
For textile yarn and fabrics, annual growth picked up to 26.8 percent in the first half from 15.0 percent in 2007. Zhou said he expected the government to introduce more favourable policies, including a cut in corporate taxes and a loosening of lending curbs.
