Since May 1, 2018, China's 17% and 11% VAT rates have been adjusted to 16% and 10%, respectively. Enterprises have obtained a 1% tax bonus space. According to a recent interview with the Economic Information Daily, one percentage point Tax cuts have stimulated the transformation and upgrading of enterprises and the room for profit-making needs. Tax dividends have begun to appear. On the one hand, some companies have noen space to increase product R&D and upgrade, and on the other hand, reduce product prices to expand sales in this space. It has also become a rational choice for some enterprises, including automobiles, home appliances, and commercial retail industries. The supply side has released the 'quality improvement' and 'price reduction' benefits, and consumers have also benefited from this.
After the reform of the VAT tax rate, the company expects to reduce the VAT 10 million in 2018 and actually enjoys the dividends of the national taxation reform. 'Tianjin FAW Toyota Engine Co., Ltd. Chief Financial Officer Cao Ping said. As a leading company in the steel industry, Baoshan Relevant person in charge of the Iron and Steel Co., Ltd. said that after the tax rate reduction, the company is expected to not only reduce the value-added tax of 117 million yuan, but also to save on the VAT tax base of urban construction tax and other additional taxes and fees more than 27 million yuan.
The reporter learned that these companies are the epitome of many companies that enjoy the dividend reduction rate of VAT. In particular, the tax reduction effect of the manufacturing industry is obvious, and companies benefit from multiple aspects. For traditional manufacturing industries, the tax rate is reduced to a tax reduction. At the same time as reducing the burden, it has actually reduced the cash flow pressure of enterprises, increased the willingness of enterprises to upgrade their machinery and equipment, expand production scale, and improve technological processes.
Lowering the tax rate by one point is expected to stimulate the internal development momentum of the entire real economy. 'Do not underestimate this 1%, one percentage point can exert the leveraging effect of leverage, coupled with the superimposed dividends of other measures to deepen the VAT reform, to the enterprise The burden reduction effect is obvious. 'Tian Jiqiang, a professor at Southwestern University of Finance and Economics and chief researcher at Xicai Think Tank, pointed out to the reporter of the Economic Information Daily that the VAT tax reduction is a major measure to continuously deepen the tax reform and release market vitality and social creativity. The transmission of the value-added tax credit chain, the effect of tax reduction will be reflected to a certain extent on the price, so that consumers benefit.
In fact, since the introduction of the VAT rate reduction policy, there have been rapid response from companies and some industries have directly adjusted their prices. For example, the National Development and Reform Commission announced on April 29 that due to the tax rate adjustment, domestic gasoline prices will be lowered respectively. The maximum retail price of diesel fuel is 75 yuan and 65 yuan per ton. Apple's final price on all goods under sale originally levied VAT on 17% tax rate was reduced by 0.85% to 0.9% on May 1.
Mercedes-Benz, Jaguar, Land Rover, Lincoln and other car companies issued information on proposed retail price adjustments through announcements, announcements, etc. For example, Mercedes-Benz C-Class and GLC SUV models have reduced prices by about 2,000 to 4,000 yuan, and Land Rover Range Rover 2018 models have reduced prices. The rate is from 10,000 yuan to 20,000 yuan.
From May 1, the railway company began to use the value-added tax rate of the main freight of the floating railway. It is expected that the society will reduce logistics costs by more than 3 billion yuan for the whole year.
Household appliances, commercial retail and other industries have also opened up price reduction space. Sales activities that take place after May can enjoy a 1 percentage point deduction, which is quite impressive for home appliance retailers whose average gross profit margin is only 5%. Qingdao Suning Liu Yan, the person in charge of finance, said: 'Reducing the tax rate saves the company's costs and allows us to better help consumers and achieve a win-win situation.'
As a leading domestic retail pharmacy, Dashenlin Pharmaceutical Group is actively promoting bargaining negotiations with purchasers under the favorable policy of lowering the tax rate, and will further transfer the dividend reduction rate to consumers.
In addition to the traditional commercial retail enterprises, e-commerce companies also benefited significantly. For example, the comprehensive tax rate for cross-border e-commerce products such as JD Global Global Purchases, Amazon Overseas Purchases, and NetEase Koala Offshore Purchases has dropped from 11.9% to 11.2%. The comprehensive tax rate has dropped from 26.4% to 25.5%. This will undoubtedly help cross-border e-commerce, the development of new foreign trade momentum. According to data from the Ministry of Commerce, the annual growth rate of online retail sales in China has exceeded 40% in recent years. Since 2013, It has been for five consecutive years ranked the world's largest online retail market.
Tang Jiqiang said that with the further release of the reform dividend, more companies will adjust retail commodity prices and allow consumers to enjoy real benefits. It is worth noting that the supply side releases the dual benefits of 'quality improvement' and 'price reduction'. While benefiting consumers, it will in turn further stimulate market demand, form a positive feedback from the demand side to the market supply side, and further expand the market scale of the company, thus forming a virtuous circle of both ends of supply and demand.
The tax-cutting bonuses released by the VAT reform meet the urgent requirements of the structural reforms on the supply side, provide suppliers with ample room for development, and also have a positive impact on stimulating consumption and promoting consumption upgrading. Tax Demand and Deductions The tax-orientation, consistency between tax cuts and tax reduction strategies highlights the synergistic characteristics of supply-side structural reforms and VAT reform initiatives. 'The director of the Taxation Institute of the State Administration of Taxation, Li Wanxuan, told reporters that supply-side reforms focus on solutions. The issue of supply incentives, and the fair and reasonable taxation of VAT, can create a fair and uniform competitive environment for advancing supply-side reforms, and can do a lot to comply with supply-side reforms.