The hottest VAT rate is reduced from 16 to 13

2022-07-23
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The value-added tax rate was reduced from 16% to 13%. How big is the "red envelope" of tax reduction for manufacturing industry?

manufacturing industry is the main body of the national economy, the main battlefield of scientific and technological innovation, and the foundation of building, rejuvenating and strengthening the country. In recent years, China has vigorously implemented the policy of tax reduction and fee reduction to reduce costs and burdens for the real economy, especially the manufacturing industry

the 2019 government work report proposed that "we should deepen the reform of value-added tax and reduce the current 16% tax rate in manufacturing and other industries to 13%". The manufacturing industry has become a big beneficiary of the VAT reform. This tax cut will also reduce the burden on the manufacturing industry and enhance the efficiency, vitality and innovation of enterprises, Providing a source of impetus for the transformation and upgrading of the manufacturing industry

the iron and steel industry has opened up a space of ten billion yuan to increase efficiency

economic Zhou Lei

"value added tax is the largest tax in the iron and steel industry. This year, the value-added tax rate will be reduced by 3 percentage points, which can significantly reduce the tax burden on the iron and steel industry and is generally welcomed by industrial enterprises." Chenziqi, director of Metallurgical Building Materials Department of China International Engineering Consulting Co., Ltd., said that the VAT reduction is very strong. The tax reduction and efficiency increase space of ferrous metal smelting and rolling industry alone is as high as 20billion yuan to 30billion yuan, which is of great benefit to promoting the high-quality development of steel industry and downstream industries

according to preliminary estimates, after the adjustment of VAT rate, the tax burden per ton of steel will fall by about 20 to 30 yuan. This year, the space for VAT reduction in steel mills alone will reach 20billion to 30billion yuan. In addition, the decrease of VAT rate will also reduce the payment of additional tax based on VAT

"the effect of VAT reduction is immediate, which can significantly reduce the burden on enterprises, increase the profit space of the iron and steel industry, and enable iron and steel enterprises to have greater confidence and ability to improve quality and upgrade." Chenziqi said that in recent years, the iron and steel industry has walked out of the plight of loss in the whole industry through "de capacity" and the ban on "ground bar". At present, 3D printing of the industry's profitability has been widely used in school education, product design, medical treatment, aviation and other fields, and has returned to normal. However, it is still facing arduous tasks such as accelerating transformation and upgrading and realizing green development. Through tax reduction, the benefits of steel enterprises will be further improved, and they will have greater ability to promote industrial upgrading and energy conservation and emission reduction. These include increasing investment in innovation and better implementing the innovation driven strategy; Strengthen energy conservation and emission reduction, and promote the transformation of ultra-low emissions; Reduce leverage and prevent risks, and reduce the excessive debt ratio of some steel enterprises as soon as possible

it is worth noting that the reduction of value-added tax will generally benefit the iron and steel industry. However, affected by different product structures and other factors, enterprises will benefit from different degrees. As the value-added tax is a turnover tax levied on the added value or added value of commodities in multiple links of commodity production, circulation and labor services, compared with the enterprises mainly producing low-grade and high-value products, the iron and steel enterprises focusing on high-grade and high-value products will have more room for tax reduction and efficiency increase and considerable amount. It can be said that steel enterprises that vigorously promote high-quality development have a stronger sense of gain from tax cuts

"the reduction of value-added tax rate in the iron and steel industry is also conducive to stimulating market vitality and driving downstream industries, especially the manufacturing industry, to reduce costs and increase efficiency." Chenziqi said that as the basic industry of the national economy, the favorable factors for tax reduction of iron and steel will also be transmitted to many downstream industries such as machinery, automobile, household appliances and ships. In addition to increasing efficiency for the iron and steel industry, the tax cut is also conducive to supporting iron and steel enterprises to reduce prices and make profits, so as to expand market space and enhance the competitiveness of iron and steel products. This is beneficial to reduce the procurement cost of downstream industries, drive a wider range of enterprises to increase vitality and efficiency, and even enhance the overall competitiveness of China's manufacturing industry

the price reduction of automobiles is expected to boost the market

economy yangzhongyang

"the government work report reduced the current tax rate of 16% in manufacturing and other industries to 13%, and the manufacturing industry, including automobiles, ushered in significant benefits." As soon as zhangxinghai, a deputy to the National People's Congress and the founder and chairman of Chongqing Xiaokang group, returned to the company, he shared his joy with his colleagues

representative zhangxinghai told the economy that the substantial tax cuts and fee reductions proposed in the government work report were encouraging. For example, the well-off group only reduced the value-added tax rate, saving 60million yuan a year. "The saved expenses will not be owned by the enterprise, but will give the dividends of the policy to users, expand consumption and benefit more people."

automobiles are taxable items of value-added tax. After the tax rate is reduced, there is room for both imported and domestic automobiles to reduce their prices. On March 15, Mercedes Benz fired its first shot at price reduction. The company said that it would implement the policies of "reducing taxes and fees" and "benefiting the people", and cut down the recommended retail prices of all Mercedes Benz and smart car manufacturers in Chinese Mainland in advance

subsequently, BMW quickly followed up. BMW (China) Automobile Trading Co., Ltd. and BMW Brilliance Automobile Co., Ltd. jointly announced that the manufacturer's recommended retail price of automobile products sold in China would be reduced from now on. Jaguar Land Rover also announced on the same day that it would cut the recommended retail prices of all models of Jaguar and Land Rover brands sold in China in advance. On the evening of the 16th, Volvo cars also announced that it would cut its car prices. On the 17th, Ford's luxury car brand Lincoln announced that it would cut the recommended retail prices of all models on sale

"this time, Jaguar models dropped by 42000 yuan and Land Rover models dropped by 85000 yuan." Wang Yan, vice president of Jaguar Land Rover China, said that the range rover model dropped by more than 33000 yuan, and the Jaguar XFL dropped by 15000 yuan

in fact, this is not the first time that the automobile industry has cut prices due to the reduction of value-added tax. On May 1 last year, the value-added tax rate of manufacturing and other industries was reduced from 17% to 16%. At that time, a number of automobile brands also responded quickly

relevant experts said that the situation this time is similar to that last time. I believe that other luxury brands will follow up later. The difference is that the VAT rate will be reduced by a larger margin, which will naturally have a greater impact on the actual selling price of luxury brand terminals

in response to the doubt that "the price reduction of each car is not 3%, but about 2%", cuidongshu, Secretary General of the national passenger car joint committee, explained that the reduction of the value-added tax rate is not that the products misunderstood by customers can be reduced by 3 points. Otherwise, the national policy is not to reduce taxes for enterprises, but to increase the burden. In his opinion, the three points for the state to reduce the value-added tax should be broken down into all links of the industrial chain, and bring a better tax reduction effect to the value-added part

industry analysts predict that the "price reduction" of luxury brands across the board will further narrow the price gap with joint venture brands, thus forming a wave of "price reduction" that is usually applicable to the realization of the predetermined tolerance of cylinder surface from top to bottom. A large number of B-class and A-class cars may be on the way to reducing prices. After the implementation of the tax reduction policy, it is conducive to promoting automobile consumption

speed up PV parity again

economy Wang Yichen

"this time, the reduction of value-added tax is at the right time, which is conducive to further directly reducing the 'non-technical cost' of PV power generation." Industry experts said that the tax reduction will guide the industry to focus on technological innovation, improve quality and efficiency, get rid of subsidy dependence as soon as possible, achieve parity, and make an important contribution to winning the battle of pollution prevention and control

the cost of photovoltaic power generation includes technical cost and non-technical cost. From the development over the years, the technical cost of photovoltaic industry has decreased significantly, but the non-technical cost accounting for 20-30% of the total cost has not shown a synchronous downward trend. At present, China's photovoltaic industry is in the transitional period of parity. Although the benchmark electricity price is decreasing, the development of the photovoltaic industry still needs sustainable policy support

When the gap exceeds the standard, caorenxian, chairman of sungrow power supply Co., Ltd., said that from a financial point of view, reducing the value-added tax will bring about a reduction in value-added tax surcharges and the accrual of accounts receivable, and also relieve the pressure on enterprises to transfer funds, thus reducing the financial burden of enterprises. This is a bonus of real money and silver, which has really helped enterprises solve practical problems. Last year, the revenue of sungrow power exceeded 10billion yuan. Calculated by reducing the tax rate by 3%, it can save them a considerable amount of financial expenditure every year. Yangliyou, general manager of Jinneng technology, also believes that the reduction of VAT rate in the manufacturing industry will reduce the tax burden of enterprises in the entire photovoltaic industry chain and the cost of photovoltaic manufacturing industry, and jointly promote the reduction of the cost of photovoltaic power generation

like all manufacturing industries, the photovoltaic industry has also faced the difficult situation of rising equipment and raw material costs and high non-technical costs in recent years. The national tax reduction measures will have a positive impact on the photovoltaic industry and stimulate the development vitality of the industry. "Tax cost is one of the links of non-technical cost. At the moment when the industry pursues parity, tax reduction can reduce manufacturing costs to a certain extent. It also has a definite effect on accelerating parity and high-quality development of the industry. The diamond special edition of vertusignature is inlaid with full or half rows of diamonds on both sides of the fuselage." Caijibo, general manager of sumeda group, said that the tax cut can mainly reduce the cost of component manufacturing. At the same time, in terms of overseas market expansion, it can reduce the cost pressure of products and improve the competitiveness in the international market

caorenxian said that from another point of view, tax reduction means that the burden of enterprises is lighter, enterprises have more funds to invest in technological innovation and talent training, confidence index and endogenous power are stronger, and technological innovation and industrial transformation and upgrading are more possible. Tax reduction is not only an immediate bonus for a single enterprise, but also a bonus for the long-term sustainable development of the industry

"the tax reduction of 3% has a significant positive effect on the PV manufacturing industry with thinner and thinner profits. It also means that enterprises will increase profits and have more funds to invest in technology research and development, so as to promote the PV industry to develop in the direction of low cost and high efficiency and enter the parity stage as soon as possible." According to Zhuang Yinghong, global marketing director of Dongfang Risheng, this tax cut is very beneficial to the photovoltaic manufacturing industry

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