Which industries benefit from the reduction of the

2022-08-07
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Manufacturing tax rate dropped to 13%, which industries benefited

introduction: this year, the current value-added tax rate of 16% in manufacturing and other industries will be reduced to 13%, and the current tax rate of 10% in transportation, construction and other industries will be reduced to 9%, so as to ensure that the tax burden of major industries will be significantly reduced; Keep the tax rate of 6% unchanged. Industries that benefit greatly from the VAT reduction mainly include: mechanical equipment, chemical industry, automobile, non-ferrous metals, household appliances, building materials, computer equipment, and coal mining

decrease again! A larger tax cut bonus is coming. In 2019, a large-scale tax cut for the manufacturing industry will be the top priority of China's active fiscal policy. Premier Li Keqiang said in his government work report on March 5 that China will implement more large-scale tax cuts in 2019, focusing on reducing the tax burden of manufacturing and small and micro enterprises. It is expected to reduce the burden of corporate tax and social security contributions by nearly 2trillion yuan throughout the year. The most important one is the reform of value-added tax. Specifically, the current 16% VAT rate in manufacturing and other industries should be reduced to 13%, and the current 10% VAT rate in transportation and construction industries should be reduced to 9%

since the 13% tax rate was abolished in July 2017 and 17% and 11% were reduced by 1% respectively, China's value-added tax rate has three levels: 16%, 10% and 6%. After this adjustment, China's value-added tax rate will change to 13%, 9% and 6% if there is a gap in the screw rod

tax revenue is not only related to the state's money bag, but also to each taxpayer's wallet. Every tax reform affects people's nerves. In the 2019 government work report just released, the implementation of more large-scale tax cuts has been placed in an important and prominent position

the report emphasizes that this tax reduction, focusing on releasing water for fish farming, enhancing the potential for development and considering fiscal sustainability, is a major measure to reduce the burden on enterprises and stimulate market vitality, an important reform to improve the tax system and optimize the income distribution pattern, and a major choice for macro policies to support steady growth, ensure employment and adjust the structure

specific measures include:

1. Inclusive tax cuts and structural tax cuts should be carried out at the same time, focusing on reducing the tax burden on manufacturing and small and micro enterprises

2. Deepen the reform of value-added tax, reduce the current 16% tax rate in manufacturing and other industries to 13%, and reduce the current 10% tax rate in transportation and construction industries to 9%, so as to ensure that the tax burden of major industries is significantly reduced

3. Keep the tax rate at the first level of 6% unchanged, but increase the production and living service industries. A. We know that supporting measures such as using clamps to clamp the samples for additional tax deduction are taken to ensure that the tax burden of all industries is reduced but not increased, and continue to move towards the direction of promoting three levels of tax rates and two levels and simplifying the tax system

4. Implement the preferential tax reduction policy for small and micro enterprises introduced at the beginning of the year

there have been calls for a reduction in the value-added tax on manufacturing industry, but the decrease of 3 percentage points is much higher than the previous industry expectations

in this regard, fanziying, a professor at the school of public economics and management of Shanghai University of Finance and economics, said that in recent years, the market has had a strong response to the high tax burden on the manufacturing industry. The direct reduction of the value-added tax rate by 3 percentage points will have a very, very obvious impact on the decline of the tax burden on the manufacturing industry, and will bring a series of related tax burden declines. It is expected that the scale of tax reduction will reach hundreds of billions

songxuetao, head of the macro team of Tianfeng securities, predicts that a 3% cut in the vat by 16% could theoretically reduce the tax by up to 668.4 billion yuan. Industries that benefit from the VAT reduction mainly include: mechanical equipment, chemical industry, automobile, non-ferrous metals, household appliances, building materials, computer equipment, and coal mining

m. manual control mode: the machine is equipped with a manual control board

the China finance fixed income team believes that the first and most direct impact of tax reduction is to reduce prices. For example, if the price excluding tax is 100, then according to the previous 16% VAT, the price including tax is 116. If the VAT is reduced from 16% to 13%, the price including tax after tax is 113, which is 2.6% lower than the previous 116

wanghanfeng, an analyst at CICC, predicted that a 3% drop in the 16% value-added tax may affect 10% of the net profits of A-share listed companies. The tax reduction has a greater impact on the current manufacturing industry in the middle and upper reaches. The sectors related to mass consumption, such as food and beverage, health care, home appliances, retail, catering and tourism, on the one hand, will directly benefit from the direct contribution of the tax reduction and fee reduction to the industry, on the other hand, they will also benefit from the comprehensive impact of the improvement of corporate profits and the increase of residents' disposable income

the strategy team of Industrial Securities predicts that after the vat of 16% is reduced to 13%, the performance of industries such as mining, chemical 5, hydraulic zigzag testing machine and machinery will increase by 16% to 10%

fan Ziying reminded that while significantly reducing the manufacturing value-added tax, we should make policy plans in two aspects: first, after the manufacturing value-added tax is reduced, the input deduction of the service industry will be reduced, or face the risk of the final tax burden rise. We should make plans to ensure that the tax burden of all industries is only reduced but not increased; Second, because the central government and local governments share 50% of the value-added tax revenue, large-scale tax cuts will bring great financial pressure to local governments. If the downward pressure of the economy is superimposed, the financial revenue of some local governments will decrease significantly. The central government should do a good job in financial subsidies

Premier Li Keqiang mentioned the above two points in his government work report. He stressed that the tax burden of all industries should be reduced but not increased by taking supporting measures such as increasing tax deductions for production and living services. It was also stressed that in the face of financial pressure, governments at all levels should live a tight life and find ways to raise funds. We will increase the profits turned in by specific state-owned financial institutions and central enterprises, reduce general expenditures by more than 5%, and reduce the three public funds by about 3%. All long-term deposits will be recovered

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