BEIJING, February 4, 2009 - China announced Wednesday it would increase tax incentives for textile exporters in a bid to help them through the global economic crisis, state media reported.
The State Council, or Cabinet, decided to hike the tax rebate for textile exporters to 15 percent from 14 percent, after a meeting presided over by Premier Wen Jiabao, state television said.
The rebate allows companies to get part of the money back they have paid in value-added tax on production input.
No date for the rebate increase was announced.
China's textile industry is a major employer, providing jobs for 20 million people across the nation.
The measure is part of a series of industry-specific incentives that the government is rolling out in response to the global crisis and the slowdown in exports.
Last month, the government announced a package for the auto industry, including measures that would encourage cleaner technologies.
The nation's textile trade has been hard hit by the global crisis, as exports last year rose just 8.2 percent from a year earlier, compared with 18.9 percent growth in 2007, the China Daily newspaper said recently.
This caused profits to shrink 1.77 percent in the first 11 months of last year to 104.2 billion yuan (15.2 billion dollars), the first decline in a decade, the paper said, citing the National Bureau of Statistics.
China's overall exports declined in both November and December from a year earlier, the first drop in seven years.
The government had tried a similar measure to help the textile industry in November, increasing the rebate then from 13 to 14 percent.