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On the occasion of the convening of the two sessions in March 2019, China’s continuous implementation of large-scale tax cuts and fee reductions is like “the spring thunder is heard, and Wan Hao wakes up.” This tax reduction and fee reduction measures for domestic manufacturing industries are also sent to textile enterprises. The first big gift bag after the spring.
"This year, we are determined to carry out a larger tax cut and reduce the fees. The VAT and the unit social security contribution rate have been reduced, and the tax reduction and fee reduction dividend is nearly 2 trillion yuan. This can be said to be a very important response to the current downward pressure on the economy. The key measures are to reduce the value-added tax on April 1 and to lower the social insurance premium rate on May 1st. “In the two sessions, Premier Li Keqiang’s answer to the tax reduction and fee reduction is a stone that stirs up waves. , triggered a big discussion outside. Online and WeChat circles are hotly discussing the impact of this tax cut on enterprises, and even carefully calculating how much tax per ton of yarn can be reduced by enterprises. Of course, the answers are quite different and the difference is far.
We have heard and seen the arguments about external evaluation. Some believe that the value-added tax of enterprises is not 3%, the impact on textile enterprises is limited, and the impact on the industrial chain is limited. Some believe that the reduction of tax rates has indeed reduced the burden on enterprises. The benevolent sees benevolence, the wise sees wisdom, this time the tax reduction and fee reduction measures adopted by China, how much benefit can enterprises get from it? What impact does it have on the cotton textile industry? In order to thoroughly understand this problem, the reporter went to Henan Textile Cluster to visit and understand.
As a textile province in China, Henan has 1,580 textile enterprises. The annual spinning volume is very impressive. According to the statistics of the National Bureau of Statistics, Henan yarn production was 3.46 million tons in 2018, ranking third in the country. Therefore, Henan textile enterprises have a certain representativeness in the country.
The so-called value-added tax refers to a turnover tax levied on the basis of the value-added amount generated by the goods in the process of circulation. Generally speaking, the tax levied on the part of the value-added product has a value-added tax, and no value-added tax is not added. Take the method of deducting the VAT for textile enterprises in Henan Province as an example. The cotton combing and combing unit consumption are calculated by 1.16 and 1.42 respectively. The price per ton of cotton is 15,600 yuan (including tax price), and the price of cotton yarn is 23,000 yuan (including tax). Price), according to the previous 16% taxation, the portion of the output tax to be paid is 23000/1.16*0.16=3172 yuan, the tax payable for the input part is 15600*1.16/1.16*0.16=2496 yuan, and the sales amount is 3172 yuan. - The entry of 2,496 yuan is equal to 676 yuan, which means that the company has to pay VAT for every ton of cotton yarn produced, which is 676 yuan, which is calculated according to the 16% VAT standard.
From April 1st, the state has set aside a 3 percentage point reduction in value-added tax. We also use the price of cotton and cotton yarn as an example, which is levied at 13%. The tax on the portion of the output tax is 23000/1.13*0.13=2646 yuan. The tax payable for the input part is 15600*1.16/1.13*0.16=2082 yuan, and the sales amount is 2646 yuan-entry item 2082 yuan equals 564 yuan, indicating that the enterprise has to pay VAT for each ton of cotton yarn produced is 564 yuan. This means that after the tax rate has dropped by 3 percentage points, the company has to pay 676 yuan - 564 yuan = 12 yuan for every ton of cotton yarn produced, and the tax reduction per ton of cotton yarn is 16.6%. This level of tax reduction is really not small.
If Henan enterprises produce combed cotton yarn, the purchase price per ton of cotton is 16,000 yuan, and the price per ton of cotton yarn is 28,000 yuan. According to the calculation of 1.42 unit consumption, it is calculated according to the above method. After the tax reduction is 3 percentage points, the enterprise produces 1 ton. Cotton yarns are subject to a tax reduction of 121 yuan, and the tax reduction per ton of cotton yarn is 16.6%. The above is only a theoretical calculation method, because the price of cotton purchased by the company and the price of cotton yarn sold are all in dynamic changes. In addition, the higher the value of the enterprise products, the greater the added value, the more the VAT paid, the lower the product, the smaller the added value, and the smaller the VAT paid. Overall, the reduction in the tax burden of textile enterprises in Henan is basically around 100 yuan / ton.
In order to facilitate the calculation, it is assumed that for every ton of cotton yarn produced by the enterprise, the tax is 100 yuan less than the previous one. According to the scale of 50,000 ingots, the monthly cotton yarn production is 400 tons. The monthly value of the value-added tax is 40,000 yuan, and the year is 48. Ten thousand yuan. For example, a 200,000-small-scale enterprise, with a monthly yarn output of 1,600 tons, can pay less than 160,000 yuan in value-added tax per month, and 1.92 million yuan a year. You said that the tax reduction is big or small.
Looking at it from another angle, last year, China’s tax revenue of more than 15 trillion yuan, nearly 40% of the value-added tax, about 6 trillion yuan. As China's largest tax category, the VAT rate is reduced by one point, and the tax reduction is in the hundreds of billions.
Professor Hu Yijian from Shanghai University of Finance and Economics said that it was found that a 16% VAT rate of 13% would reduce tax by more than 630 billion yuan. According to Henan's yarn production of 3.46 million tons, the average annual tax burden of textile enterprises in Henan alone decreased by 346 million yuan. I think after the comparison of the above several latitude data, the scale of tax reduction is self-evident for China and enterprises. For the enterprise, it is a lot of accumulation, and the sand is built into a tower; for China, it is the determination to reform the blade inward and the strong man to break the wrist.
A textile enterprise in Henan told reporters that in March, many downstream enterprises had pre-paid payment and subscription contracts in order to deduct the value-added tax. As a result, the number of orders received by textile enterprises soared, and some textile enterprises were prepaid orders for more than 20 days. Later, but as April 1 approached, this situation gradually "cooled down."
Of course, the benefits that companies get are far more than that. Liu Kun, Minister of Finance, said on the 24th: "China will reduce the proportion of urban employees' basic endowment insurance units from May 1st, and the number of local employees can be reduced from 20% to 16%, effectively reducing the proportion of social security contributions. Experts are expected to lower social insurance premiums. The rate can be reduced by 800 billion yuan for enterprises."
In the process of research in Henan, the reporter also carefully calculated this. We take a textile company in Luohe as an example. The number of employees is 350, the annual yarn output is 8,000 tons, and the enterprise is based on 60% of the average local social wage. Paying endowment insurance, the current monthly payment for employees is 4200*0.6*0.2=502 yuan, and after the social security rate is reduced to 16%, the calculation result is 4200*0.6*0.16=403 yuan, and the social security rate drops by 4%. It can save 100 yuan per person per month for the enterprise, and the total annual savings is 400*100*12=420,000 yuan. Taking the enterprise as an example, through the reduction of taxes and fees, the company can save a total of 420,000 + 800,000 yuan = 1.22 million yuan per year. After the tax cuts and reductions, a large-scale enterprise will enjoy so many benefits, which shows that this reform has never been more powerful. If it is nationally, it is expected that the burden of corporate tax and social security contributions will be reduced by nearly 2 trillion yuan.
Many enterprises in Henan province said that the tax reduction and fee reduction will reduce the burden on enterprises, improve the profit level, and facilitate the light-loading of enterprises. At the same time, the overall operating cost of the cotton spinning industry chain will also decrease, enhancing the enterprises in the international market. Competitiveness.
Relevant professionals believe that lowering the VAT rate and the social security contribution rate can significantly reduce the tax burden of enterprises and have a positive impact on manufacturing enterprises. In a highly competitive industry, some of the tax cuts will be passed on to consumers through price cuts, which will stimulate demand and boost corporate earnings growth.
However, some Henan enterprises surveyed are worried that although the tax reform will be carried out at the national level, the effect of reform will be discounted after the grassroots level. On March 26, Henan Governor Chen Runer went to the Provincial Taxation Bureau and the Provincial Social Security Bureau to investigate the work of tax reduction and fee reduction and held separate symposiums, emphasizing the need to implement the decision-making arrangements of the Party Central Committee and the State Council, and promote tax reductions on time and quality. The fee policy will be effective, and it will never be allowed to “play white bars” to effectively enhance the sense of corporate access. This undoubtedly gave the company a reassurance.
Coincidentally, since last year, influenced by Sino-US trade, the downstream consumption and export of China's cotton textiles have been weak, which has greatly affected cotton prices. Through the reform of tax reduction and fee reduction, the operating cost of the cotton spinning industry chain will be lowered, the market will be stimulated, and the domestic market will be upgraded. The competitiveness of textile enterprises and the volatility of international export markets will play an important role. In particular, it will play a very positive role in stabilizing cotton prices, increasing cotton consumption, and ensuring healthy and sustainable operation of the cotton market.
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