The hottest new policy of value-added tax reductio

2022-09-23
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The new deal of value-added tax reduction will benefit the manufacturing industry the most from today

the new deal of value-added tax reduction will benefit the manufacturing industry the most from today

April 1, 2019

the value-added tax, the largest tax in the middle and high plasticity country, will meet the tax reduction of more than trillion. From April 1, the new policy of value-added tax reduction was officially implemented. As a "main dish" and "hard dish" of this year's larger tax reduction, it will bring significant benefits to enterprises and the public. How to reduce taxes? Who benefits the most? Let's look at Chinese coatings

the trillions of value-added tax reductions officially kicked off

value-added tax is a turnover tax levied on the basis of the value-added of goods (including taxable services) in the process of circulation. China has introduced the value-added tax system since 1979. Up to now, value-added tax has become the largest tax, with the revenue scale exceeding 6 trillion yuan in 2018

from April 1, the value-added tax will be reduced on a large scale, mainly including four items: reducing the tax rate, expanding deductions, withholding tax rebates, and adding credits

in terms of reducing the tax rate, items subject to the 16% tax rate will be taxed at the 13% tax rate, mainly involving manufacturing and other industries; Items subject to the 10% tax rate will be taxed at the 9% tax rate, mainly involving transportation, postal services, construction, real estate, basic telecommunications services, agricultural products and other goods

in terms of expanding the deduction, the purchase of domestic passenger transport services will be included in the deduction scope for the first time. For example, when you get train tickets, air tickets, bus tickets and other tickets with passenger identity information on business trips, the unit can deduct them. At the same time, the input tax paid for acquiring real estate will be deducted from two years (60% in the first year and 40% in the second year) to a certain amount of odor that will volatilize all fiber, paint, leather, viscose and other materials at one time

in terms of retention and tax rebate, the retention and tax rebate is extended to the whole industry. As long as taxpayers meet the conditions, their new retention and tax rebate can be refunded. The term "retained tax credit" refers to the input tax that is not fully deducted because the output tax of the taxpayer is insufficient to offset the input tax. Generally speaking, the tax credit can only be deducted until it is carried forward to the next period. Now it can be refunded, which can alleviate the pressure of enterprise capital occupation and directly increase the cash flow of enterprises

for taxpayers whose main businesses are postal, telecommunications, modern services and life services, 10% of the input tax is added to offset the tax payable

the scale of tax reduction is expected to exceed trillion yuan, and the manufacturing industry will benefit the most.

"by implementing the above measures, we will ensure that the tax burden of major industries will be significantly reduced, that the tax burden of some industries will be reduced, and that the tax burden of all industries will only be reduced." Vice Minister of finance chenglihua said

"in addition to reducing the tax rate and expanding the deduction, the measures introduced in this value-added tax reform also include the institutional tax rebate at the end of the period. Reducing the tax rate directly reduces the tax payment, and increasing the deduction items is also reducing the tax payment. The tax rebate at the end of the period is to increase the cash flow of enterprises and reduce the financial expenses of enterprises." Wang Jianfan, director of the Department of Taxation of the Ministry of Finance in the field of cathode materials in China, said that in general, the combined scale of these measures should exceed 1trillion

which industry benefited the most from the VAT reduction? Manufacturing is the only industry

the value-added tax reform focuses on the manufacturing industry. The applicable tax rate of manufacturing industry will be reduced by 3 percentage points, which is one of the industries with the largest decline, and the tax burden of manufacturing industry will be further significantly reduced. The manufacturing industry, which accounts for the highest proportion of ending tax credits, will be the biggest beneficiary of this policy

with regard to the VAT reduction, Yang Xiaoliang, chief financial officer of Sichuan YEMA Automobile Co., Ltd., said that the 16% VAT rate in the manufacturing industry was reduced by 3 percentage points. Initially, the company could save more than 50 million yuan of tax a year, and the money bag was thick. The head of Zhuhai United Laboratories Co., Ltd. said that this round of tax reduction is expected to reduce the value-added tax and corresponding additional taxes of nearly 5.5 million yuan for the company in one year

consumers will also benefit. People's daily necessities will see a wave of price cuts.

the reduction of value-added tax rate will not only benefit enterprises directly, but also reduce commodity prices due to the corresponding reduction of taxes contained in commodity prices

since April 1, a wave of household goods have seen a wave of price cuts, with oil, electricity and natural gas prices falling one after another, making ordinary people also benefit from this tax cut

the oil price is reduced. As the value-added tax rate of refined oil is reduced from 16% to 13%, the maximum retail price of domestic gasoline and diesel oil is reduced by 225 yuan and 200 yuan per ton respectively. According to the calculation of several analysis institutions, it is equivalent to a decrease of 0.18 yuan per liter of No. 92 gasoline and 0.17 yuan per liter of No. 0 diesel. The reduction of oil prices and travel costs have saved car owners a lot of money

electricity price adjustment. The national development and Reform Commission requires that after the value-added tax rate of power enterprises is adjusted from 16% to 13%, the space for the reduction of tax inclusive transmission and distribution electricity price of provincial power enterprises is used to reduce general industrial and commercial electricity prices. Reducing general industrial and commercial electricity prices will not only benefit industrial enterprises, but also commercial enterprises. Lowering electricity prices may make profits to consumers and promote industrial development

the trans provincial pipeline transportation price of natural gas and the benchmark gate station price of natural gas have also been adjusted. The national development and Reform Commission requires that local price authorities take into account the reduction of value-added tax rate when arranging the sales price of natural gas, and effectively give all the dividends of value-added tax reform to users

the benchmark gate price of natural gas refers to the "wholesale price" supplied by upstream natural gas suppliers to local gas companies. With the reduction of wholesale prices, residential gas prices have room to fall

there has been a wave of price cuts in the automotive industry. FAW Volkswagen brands all cut prices, with a maximum reduction of 8000 yuan. Mercedes Benz, BMW, Volvo, Jaguar, Land Rover and other luxury car brands also lowered the recommended retail price, with a maximum reduction of 85000 yuan

it is expected that the retail price of more goods will decrease. For example, when the value-added tax rate was reduced from 17% to 16% last year, some retail prices fell. This year, the tax rate will be further reduced to 13%, and it is expected that some retail prices will be further reduced

for example, according to the 16% value-added tax rate, the price of a model is 5000 yuan, so the price excluding tax is 5000 ÷ (1+16%) =4310 yuan. After the tax rate was reduced from 16% to 13%, the latest retail price reduction space was 4310 × (16% - 13%) =129.3 yuan

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