VAT Preferential Policies And Operations For Comprehensive Utilization Of Resources (1)

In order to encourage building materials enterprises to make full use of waste residue and produce building materials, China has issued two preferential tax policies for comprehensive utilization of resources since 1995.

The first is the fiscal and tax [1995]44 "notice on the exemption of value-added tax on the comprehensive utilization of some resources". It stipulates that the building materials produced by building materials enterprises can be exempt from value-added tax policies in the raw materials of the building materials, which are mixed with coal gangue, stone coal, coal ash and coal burning boiler slag (excluding blast furnace slag). The two is the Circular No. [1996]020 of fiscal and taxation No. 30% on the preferential policies for value-added tax on some resources comprehensive utilization products. It clearly stipulates that the above preferential policies should be continued, and the scope of exemption from value-added tax will be extended to other building materials produced by other wastes as raw materials.

This preferential policy is relatively simple, but it is rather complicated in actual implementation. Here is an example to illustrate.

The Yanshi cement plant in Henan province has made full use of this preferential policy to produce building materials with more than 30% waste residue. In the past three years, it has been exempt from VAT more than 639 yuan, and achieved good results.

The factory's procedures to enjoy this policy are as follows.

The Yanshi cement plant is a state-owned enterprise. It now produces about 200000 tons of cement, and the leading product is Xiangshan brand 425R Portland cement.

After the preferential policies were introduced, the factory began to plan and make use of this preferential tax policy.

In March 1998, the factory formed a technical force to tackle key problems in science and technology.

In April of that year, when entering the product test stage, 6000 tons of cement was produced according to the amount of waste residue added by the national policy. It was tested by the Henan cement quality supervision and testing station, which fully complies with the GB175 92 standard.

After the cement was put on the market, user feedback was good.

Since then, the factory has continued to do the blending experiment, stable batching formula, began production in bulk in June of that year, and produced 41333 tons of cement in 7 and August. By measuring and calculating, 11774 tons of waste residue was actually utilized, and the volume ratio of waste to slag was up to 36%, of which 2204 tons of waste residue were replaced by clay, 740 tons of coal and 2049 tons of limestone.

According to scientific proof, the plant can use 50000 tons of coal gangue, 10000 tons of fly ash and 12000 tons of sulphuric acid slag each year, with an annual output of 210 thousand tons of cement.

To the relevant departments, the application of "resource comprehensive utilization enterprises" was put forward. The factory formally put forward the application of "resource comprehensive utilization enterprise" in August 1998 to the Luoyang resources comprehensive utilization appraisal appraisal team.

In September 1998, the Luoyang economic and Trade Commission and the relevant departments such as the heavy industry bureau, the State Administration of Taxation and the Local Taxation Bureau jointly formed a joint review group to carry out on-site review of the factory's declared resources comprehensive utilization enterprise. It was found that the ordinary portland cement produced by the factory was tested by the Henan cement quality supervision and testing station, and all the indicators were in line with the national standards. After being appraised by the city's competent industry department, the factory's quality inspection means were complete, the quality assurance system was perfect, and all the technical indicators met the requirements of the industry.

The inspection group looked at the production process, measurement methods, reviewed the original records and other relevant information, and tested the contents of fly ash, coal gangue and sulphuric acid residue. The data provided by the plant were reliable. After calculation, the volume ratio of ordinary 425R type cement added to the waste residue produced by the factory reached over 30%, which has the conditions of comprehensive utilization of production resources, and has certain social and economic benefits. It agreed to confirm the factory quot; Luoyang comprehensive utilization enterprise of resources.