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VAT trillion tax bonus classification How companies and consumers distribute income – Finance News



VAT trillion tax bonus classification How companies and consumers distribute income

Chen Yizhao

[去年5月至12月,增值税税率下调减税2700亿元,其中制造业等行业适用税率由17%降至16%,减税约945亿元,占35%。]

Starting on 1st April, the new VAT rate policy was significantly reduced. More than 9.3 million VAT tax bill systems have been upgraded, and invoices can be sent at the new tax rate. The value added tax dividend of more than 1 trillion yuan has been released throughout the year. The game between enterprises, enterprises and users has started quietly.

Having been affected by the VAT rate, some industries have started to cut prices for the benefit of consumers. The first to start is the automotive industry, one that is our foreign owned brand like Mercedes-Benz, BMW or Audi, or independent brands like SAIC Volkswagen, FAW-Volkswagen, Roewe, and they have announced the price cuts, ranging from a few hundred to tens of thousands.

The public utility category subsequently ceased, the National Development and Reform Commission announced that the price of refined oil products, natural gas stations and inter-provincial pipeline transport prices, and general industrial and commercial electricity prices will fall. The China Railway will reduce national rail freight rates for transport vehicles and containers. In addition, some consumer goods no longer charge prices, releasing dividends indirectly.

Analyzed a number of financial experts and taxpayers of the first financial reporters, the cuts in the tax rate were one that companies choose to cut prices depending on multiple factors such as cost, market competition, pricing strategies. . In this cycle of reducing taxes, the cuts in utility tariffs because we do not take the social responsibility for profit-making purposes. All tax reduction dividends are therefore given to consumers in accordance with the requirements of the competent authorities. The price cuts of car companies are mainly due to recent slow sales in the auto market, fierce competition, and the fall in prices through tax cuts to boost sales.

Tian Zhiwei, assistant dean of the University's Public Policy and Governance Institute of Finance and Economics, told the First Financial Reporter that the income from last year's VAT rate reduction was around four or six according to last year's VAT model calculation. The benefits of VAT tax cuts are more pronounced.

Reduce taxes and open some enterprises

This year, it can be said that tax reduction policy and reduction fees almost 2 trillion China is the largest in history, and the value added tax relief will exceed 1 trillion yuan.

In particular, starting from April 1, the VAT rate in manufacturing and other industries fell from 16% to 13%, and the VAT rate in other transport, construction and other industries fell from 10% to 9%. In addition, in order to further widen the scope of the input tax deduction, the purchase of domestic passenger transport services by the taxpayer can be included in the deduction: the input tax paid by the taxpayer to obtain real estate is changed from two deductions. one-year full-time deduction, and tax is increased. The person can deduct the input tax in the current period: both the production industry and the live service can enjoy the input tax of 10% plus the deduction; eligible taxpayers can apply for repayment of the incremental tax credit.

Value added tax is an indirect tax. In principle, the ultimate tax burden is for consumers rather than enterprises. However, because factors such as tax deduction chain imperfect value, and some enterprises may not be able to pass the tax burden in full, some enterprises keep a certain tax burden.

Tian Zhiwei said that while the VAT tax relief is a tax reduction for enterprises, the benefits of tax reduction will not be attributed to the initiative itself. The tax cuts are distributed between consumers and businesses, between companies and employees hired, between operators and investors, and between the sectors up and downstream in the industry.

Some industry companies have started to put all the tax reduction dividend to consumers downstream.

After the publication of the relevant policies on tax reform for sale in March this year, domestic and foreign automobile manufacturers responded to the tax reduction call, and they reduced the suggested retail price of the manufacturers. For example, a luxury car of Mercedes-Benz has a price drop of 64,000 yuan; FAW-Volkswagen officially announced that it will reduce the official guideline price of all models sold, with the highest reduction of 8,000 yuan; SAIC Volkswagen has reduced the retail price of Volkswagen and Skoda brand models. 20,000 yuan;SAIC GroupIts own brand MG and Roewe have also cut prices from 3,000 to 5,000 yuan.

Shortly afterwards, the National Development and Reform Commission published a document to reduce oil prices to purify, natural gas stations and inter-provincial pipeline transportation, and general industrial and commercial electricity. Including 1st April, the VAT rate of the refined oil product was reduced from 16% to 13%. Accordingly, the highest retail price of domestic gasoline and diesel is reduced by 225 yuan and 200 yuan per ton respectively. On average, the number 92 was reduced by 0.18 yuan, the 95th was reduced by 0.19 yuan, and diesel No. 0 was reduced by 0.17 yuan. The National Development and Reform Commission requires the relevant competent authorities to benefit the users of the VAT reform.

On 31 March, China Railway Corporation decided to reduce the VAT rate and reconcile the freight rates of the whole railway, LTL, and National Rail container loads, and cancel and reduce certain fees and charges. The company has a profit of about 6 billion yuan.

After lowering the VAT rate and reducing the corporate tax burden, some companies that were planning to raise prices would originally give the best to the rise in prices, and consumers will actually benefit t .

For example, the red red product "salted egg yolk pine group" sold by the old Shanghai brand "Xinghualou" has maintained a price of 50 yuan box (6 pieces) this year. Ms Wang, financial manager of Xinghualou Food & Beverage Co., Ltd, said that prices have risen, but the company's youth group has not raised prices, which is due to the increase in profits due to cuts and tax fees.

Multiple factor game

The industry has the most positive price cuts, linked to the greatest benefit of the tax cuts, and also linked to the cold and price cuts in the car market.

Recently, Finance Sub-Minister, Cheng Lihua, briefed the State Council's policy that the manufacturing industry has always been in the industry with the biggest tax cuts and the most obvious benefits. From May to December last year, the VAT rate was reduced by 270 billion yuan, which reduced the relevant tax rate for manufacturing and other industries from 17% to 16%, and the tax reduction was about 94.5 billion yuan, which is 35% . The deepening of VAT reform implemented on 1 April this year also focuses on manufacturing tax cuts.

As one of the representatives of the manufacturing industry, the automobile manufacturing industry has a significant reduction in burden. According to the financial monitoring of the local car company Sichuan Mustang Automobile Co., Ltd, reducing the VAT rate of 3 percentage points will give a tax of 50 million yuan per year to the enterprise.

Li Jun, PwC China's indirect tax service partner, told the First Financial Reporter that companies chose to cut prices after lowering the tax rate depending on factors such as changes in costs, market competition environment and corporate bargaining power. Last year, the car industry VAT rate fell by 1 percentage point, and many automators did not cut prices. However, this year's VAT rate fell by 3 percentage points, and car companies generally cut prices. In addition to the apparent decline in corporate losses, it is more important that the Domestic Automobile market has experienced a drop in sales for the first time in nearly 20 years last year. The previous market environment has encouraged car companies to cut prices to increase sales.

"Car sales have dropped sharply, and competition has become more intense, which has reduced the bargaining power of car companies, so they will use the VAT rate to cut prices. So the industry is in economy t fierce and sluggish, and the rate of decline in the VAT rate is likely to fall. More, "said Tian Zhiwei.

Eligible public authorities have therefore published a document that encourages relevant initiatives to cut prices and lead social expectations, so that tax cuts will benefit consumers and allow enterprises to get real money.

Li Jun believes that some industries are facing increasing pressure on workforce, raw materials and housing rent. As a result of this reduction in tax, these costs have been offset, and the original price has To maintain, and users will benefit indirectly.

Shi Wenpo, an associate researcher in China Science of Fiscal Science, told the First Financial Journal that some companies had not cut prices directly after tax cuts, but had given them to consumers through promotions.

His research found that while the VAT reduction rate has reduced the overall tax burden, in the case of rising raw materials and energy such as steel and cement, this concession is reflected more the industries up the river as raw materials and energy. Not many of the advantages of enterprises (mainly private enterprises) Even some enterprises are strongly pressed by enterprises up and down the river, which just don't benefit from them, but who have & # 39 u damaged.

Shi Wenpo suggested that the government should do a good job in leading industry behavior and enterprises, especially to avoid some enterprises using the market in the industrial chain, and enjoy tax dividends to ensure that the industry as a whole shares the consequences of tax reduction.

Li Jun said that companies with technological advantages have stronger bargaining power and are more likely to benefit from tax cuts. This also encourages companies to foster good internal strength, increase technological innovation, and produce higher quality products.

On March 27, Premier Li Keqiang stressed during his inspection in Hainan that he should be wary of using the tax reduction service to make a name for his own.

In order to ensure that the money and real money for reducing taxes and reducing fees has actually fallen to the market entities as enterprises, the State Taxation Administration recently announced a notice on the investigation and treatment of loan services and t definitely reduce third party fees, focusing on whether there are still third party stage crimes. Voluntary principle to force taxpayers to buy value-added services, whether there is a service unit selling special equipment or tax-controlled support services, bundling sales equipment, software, and other goods illegally, Whether monopoly has third party status to collect unreasonable benefits.

Editor in charge: Zhang Guoshuai


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