Although the reduction of the tax rate reduces the overall tax burden, different industries and enterprises in different links of the industrial chain have different pricing powers, and the applicable tax rate may be different. Therefore, the benefits of VAT reductions are different, and some disadvantaged enterprises obtain tax reductions. And the expectation of tax reduction is even greater--
Starting from April 1, this year, the 16% value-added tax rate for manufacturing and other industries fell to 13%, the 10% value-added tax rate for transportation and construction industries fell to 9%, and three deductions, additional deductions, and tax rebates were extended. Supporting measures are the "main course" of tax and fee reduction this year.
The Institute of Public Policy and Governance of Shanghai University of Finance and Economics recently released the "Quarterly Analysis Report on the Effects of China's VAT Reduction Policies" (hereinafter referred to as the "Report"), which for the first time analyzed the effects of this round of VAT reduction policies through a professional model. In the face of this tax-cut meal, how do experts evaluate? What are the gains of the company? What do individuals think of it?
Significantly improve corporate profitability
Hu Yijian, Group Leader of the Report and Dean of the Institute of Public Policy and Governance, Shanghai University of Finance and Economics, calculated a single account: in the second quarter of this year, the national value-added tax tax amounted to 1,132.357 billion yuan, and the current GDP was 23.75 billion yuan. The VAT burden rate is 4.73%. Compared with the 7.41% in the first quarter without VAT reform, the VAT burden ratio decreased by 2.68 percentage points.
The "Report" shows that the reduction of value-added tax has increased the revenue level of key tax-source enterprises (100,000 enterprises with an annual tax payment of more than 5 million yuan), which is about 3.27%, and the driving effect on the private economy is greater than the average level. , Driving private economy revenue growth of 4.54%, 1.39 times the average level. VAT reductions have also increased corporate profitability, increasing the profitability of key tax source companies by an average of 1.58 percentage points, and turning 2.4% of loss-making companies into profit.
The numbers look abstract, let's hear the intuitive feelings of the enterprise. Zhang Yunle, owner of a pet food online store in Nanhe County, Hebei Province, said: "Our store enjoyed a tax deduction of 11,000 yuan in the first two quarters of this year, which is equivalent to a profit of more than 20,000 yuan a year."
The feeling of large enterprises is even more obvious. Chongqing Yufeng Wire and Cable Co., Ltd. is a large high-tech enterprise. The company's general manager Zeng Lingguo said, "After the value-added tax rate is reduced to 13%, it is expected that the company can reduce the value-added tax and surcharges over 4.5 million yuan throughout the year. These real and silver tax benefits effectively reduce the company's Operating costs and financial pressure. "
Hu Yijian said that in the second quarter of this year, tax reductions were achieved in 20 major industries, but the tax reduction rates of different industries were quite different, with an average tax reduction rate of 22.48%. The 16% tax rate applies to the manufacturing and wholesale and retail industries, which have become the biggest beneficiaries due to the 3% reduction in the tax rate.
Dr. Zhiwei Tian, deputy leader of the "Report" research team and the Institute of Public Policy and Governance of Shanghai University of Finance and Economics, told reporters: "The impact of the VAT reform on the economy is a gradual process that may take about three years to fully release."
The "Report" predicts that, in terms of macroeconomics, the value-added tax reform has a significant boosting effect on China's major macroeconomic variables, which can accumulate GDP growth of 0.362%. If calculated based on 2018 data, it is equivalent to driving China's GDP to increase by 301.4 billion yuan. Among them, the driving effect on GDP growth in 2019 is about 0.181%. Accumulated employment growth of 0.028%, which is equivalent to an increase of 217,400 jobs. At the same time, the tax reduction will also affect the income level and consumption level of residents by driving profits and increasing employment. In 2019, the value-added tax reform will increase China's residential consumption by 1.413%.
Consumers can enjoy tax reduction benefits over 76%
The "Report" shows that in terms of sharing the benefits of tax reduction, enterprises enjoyed 23.11% of this tax reduction benefit, while consumers enjoyed 76.89% of this tax reduction benefit. "In the end, the benefits of the VAT reduction are mainly obtained by consumers, which has an important role in expanding China's domestic demand," Tian Zhiwei said.
Tian Zhiwei analyzed that the current residents' feelings about VAT reduction may not be strong. This is because in the early stage of the reform, enterprises had stronger bargaining power than consumers, so enterprises benefited more in the short term. But in the long run, companies will face competition from similar companies and gradually pass tax cuts to consumers. Consumers benefit from more than just commodity prices. The impact of tax and fee cuts on wages is another important way for consumers to benefit.
Yan Shige runs two small medicinal material wholesale companies in Shengzhou, Anhui Province, which employs 1,200 people a year, of which more than 80% of the rural labor force is transferred. In the first seven months of this year, Yan Shige's company enjoyed various tax benefits such as value-added tax of nearly 70,000 yuan, and is expected to enjoy tax relief of more than 200,000 yuan throughout the year. These reduced taxes and fees can offset his entire year's labor costs, raising wages and expanding workers naturally. Some workers who joined this company in July this year have doubled their monthly salary.
When interviewing reporters in many places this year, it was found that because of different factors such as bargaining power and business decision-making, different companies will face a variety of factors such as the transfer of value-added tax reduction dividends to consumers, sharing with upstream and downstream, and exclusive use of their own. mode. However, no matter which model, consumers will benefit from different levels.
Mr. Zheng, the financial director of the Terracotta Warriors and Horses Travel Agency in Shaanxi, said: "This year, our corporate tax burden has dropped significantly. The increased funds have given us more room to expand our business, improve services and improve employee benefits." Mr. Zhang tasted the sweetness: the standard of accommodation increased from the original two stars to three stars, the catering changed from the original group meal to a buffet, and special meals were added.
A large number of companies have used tax reduction bonuses in the research and development of new products and technologies, which will bring consumers higher-performance and better-experience products and services. Meishang (Guangzhou) Chemical Co., Ltd. lost money in the first quarter of this year, and the company's senior management was struggling to slow down the production and research and development of the product line. However, with the implementation of the VAT reduction policy in April, the company has already lost money Reduced by 63%, and profit is in the second half. To this end, they decided to continue to expand reproduction, and the investment in research and development is expected to increase by 10% year-on-year, of which 21 million yuan is planned to be used for new product development.
VAT reduction effect still needs to be improved
"With the implementation of the value-added tax reduction policy, the effect of tax reduction has gradually emerged, but there is still a gap between it and the potential policy effect." Hu Yijian said.
The "Report" believes that although the scale of VAT reductions is unprecedented, tax reductions must work through the market. Although reducing the tax rate reduces the overall tax burden, different industries and enterprises in different links of the industrial chain have different positions in pricing power, and the applicable tax rate may differ. Therefore, the benefits of VAT reductions are different, and some enterprises in disadvantaged positions receive tax reductions. There is a greater difference between expectations and tax cuts.
"As the largest, most important and most important tax in China, VAT has the direct impact and effect of tax reductions, on the one hand, corporate tax reductions, and on the other hand, government revenue reductions. Because the tax reductions are large, they add value The short-term tax reduction effect is obvious, which poses a severe challenge to the finance. "Hu Yijian believes that measures to revitalize non-tax revenue, save government expenditure, and adjust the fiscal budget can be adopted to revitalize state-owned funds and assets through multiple channels. Short-term fiscal revenue reduction in exchange for long-term fiscal and economic sustainable income growth.
Experts believe that deepening the value-added tax reform has the characteristics of strong policy, wide coverage, tight schedule, heavy task, high intensity, and high difficulty. It requires both the efforts of the tax department and the concerted support of relevant departments. It also requires the close cooperation of the general taxpayer. .
It is understood that the taxation department has established a unified command system of "one pole to the end", formulated a roadmap, timetable, and mandate for the implementation of tax reduction and fee reduction work, so that the deepening of the value-added tax reform plan can be implemented smoothly and efficiently.
The "Report" recommends that, in the next step, the taxation department should continue to strengthen coordination with other government departments and enterprises to effectively solve the new situations and problems that have arisen in the process of deepening the implementation of the value-added tax reform, implement a detailed tax reduction policy and allow tax reductions. The effect of the fee reduction policy has fully manifested, and the tax reduction fee reduction bonus has been transformed into an endogenous driving force for high-quality economic development.
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