Investigation On Tax Levy In Zhejiang Zhili

A seemingly accidental incident reveals the interweaving of multiple social contradictions, such as external population management and industrial pformation.

Zhili Town, under the jurisdiction of Huzhou, Zhejiang Province, is located in the north of Taihu. It is known as the beautiful place of the water country. It was named after the prosperity of weaving industry.

To this day, the ancient town of Northern Zhejiang still flourished in weaving, the largest production base for children's clothing and the distribution center of cotton grey cloth in China. The local people claimed that "one of the four children's clothes worn by children across the country is made in weaving."

In October 26th, a sudden incident disrupted the busy rhythm of Zhili town.

Huzhou official announcement, in the morning of October 26th, in the process of carrying out the "socialization management" of children's clothing processing enterprises in Zhili Town, the representatives of the collection personnel who came to collect the house were dissatisfied because of their simple working methods.

A number of Anhui owners said the owners were hurt, but officials said they had "pushed each other but were not hurt".

According to the official notification, hundreds of people gathered together to collect petitions from the town government after their careers.

At 18 o'clock that night, there were five or six hundred people gathered in Fumin Road area, and the crowd gathered at the largest number of thousands of people.

In the meantime, a Audi car was worried about being smashed and the owner drove off quickly and knocked down nine people along the way.

The official said the injured were not life-threatening when they were sent to hospital.

However, there were people who died.

Since then, a few people have continued throwing stones, smashing street lights, billboards, cars and so on.

At noon on the 27 th, some people gathered in front of the town government. Some of them came into town to intercept vehicles and smash windows.

In the process, a police car was lit, and a policeman and three policemen were slightly injured.

The tension continued for the next two days, and almost all children's clothing factories in Zhili stopped production because of the worry.

Until 29, the situation became stable.

According to the official announcement, at the time of 18 that night, the public security organs had 21 criminal detainees and 51 administrative detainees.

Under the multi-party comfort, some children's clothing enterprises began to resume normal production.

This seemingly accidental incident exposes the interwoven social contradictions such as external population management and industrial pformation.

Wanjia small workshop

Zhili town's children's clothing industry started in the 70s of last century, and then accelerated development. In the late 80s, it occupied 20% of the market share of the whole country. By 90s, 30% of children's garments were produced in China.

In 2002, Zhili town was named "China's children's wear town" by the China Textile Industry Association and the China clothing association.

Zhili town is characterized by its distinctive architectural features, mainly based on four or five storey buildings, and the combination of factories and shops - the upper floor is a processing workshop, and the first floor is a shop.

Almost every family has its own brand, "piggy Benny", "sesame open", "the game", "Frog Prince" and other signs gradually lined up.

Around the production of children's clothing, Zhili town also spawned many supporting industries, such as embroidery, printing and dyeing, ornaments and so on.

According to Jin Xingen, deputy district head of Wuxing District of Huzhou, there are 1.3 000 children's wear businesses in Zhili Town, of which 8700 are directly processed and the rest are engaged in supporting industries for children's wear.

The villages surrounding Zhili town have also become part of the children's wear industry chain. Almost every household is a small children's clothing processing factory. Most of the operators are migrant farmers from Anhui.

Their experiences were quite similar. They started working in the clothing factories in the town, and later found that they could make more profits by themselves. So they set up small workshops by themselves, rented the houses of local farmers, bought several sewing machines, employed several workers, and some even married only to form an independent production unit.

The operation mode of these small workshops is exactly the same. The processing factories get the cut materials from the regular operators, assemble them into children's garments according to the sample clothing, and process a piece of processing charge which is not equal to the amount.

Compared to the small businesses run by outsiders, the locals are more engaged in the order business, and then hand over orders to many small workshops so as to earn the difference.

For example, some people receive 200 orders for children's clothing at a price of 2000 yuan, and then order a small workshop with a unit price of 6 yuan. In the end, the owner can get a processing fee of 1200 yuan, and the person who holds the order will earn a price difference of 800 yuan.

Because processing owners generally do not have the ability to collect orders, they are highly dependent on local operators.

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The paradox of "head tax"

Zhejiang's regional economic development is embodied in the "small rural industry agglomeration", characterized by one Township, one product, and scattered processing.

Lucheng, Wenzhou shoes, glasses, lighters, Yongkang hardware, Yiwu small commodities, Dongyang wood carving, weaving children's clothing are typical representatives.

Compared with the registered business operators in Zhili Town, the small workshops in general were not registered. In earlier years, these workshops did not pay taxes.

However, since 2008, the local tax department has introduced the "head tax", that is, the number of sewing machines in the workshop as the basis for taxation.

Jin Xingen, deputy district head of Wuxing District, explained that because of the poor turnover of small workshops, it was difficult to collect in normal ways. The "head tax" actually contained value-added tax, income tax, business tax and education surcharge.

At first, a sewing machine annual tax of 80 yuan, then almost doubled every year, in 2009 it was 160 yuan, in 2010 it was 343 yuan, and this year it rose to 626 yuan again.

Huzhou official did not publish the basis for tax increase. Jin Xin Yuan said that the amount of taxation was derived from the comprehensive conversion of various taxes, but he did not disclose the relevant calculation standards.

In contrast, this year's tax revenue has also increased considerably in Zhili Town, which has been officially registered. "We levy a tax on the pavement. Last year it was 7000 yuan, and this year it rose to 13 thousand yuan to 15 thousand yuan."

A local owner told reporters.

Jin Xingen believes that every sewing machine in Zhili town can earn up to eight thousand or nine thousand yuan a month, with an average of about six thousand or seven thousand yuan per month, compared with the standard of regular enterprises, which is 600 yuan per year.

A surnamed Anqing owner said he had a net income of about 200 yuan a day, equivalent to 6000 yuan a month, which is close to Jin Xingen's estimate.

But this is under full load work, "usually sixteen hours and seven hours a day, often chewing rice, sitting in front of the machine."

He surnamed owner said.

In Zhili Town, some children's clothing processing workshops did not formally pay taxes, so the Tax Department collected the collection by two levels of town (township) village.

Because of lack of manpower, Zhili town also recruited some tax administrators who called for tax collection.

Jin Xingen said that such a way of Taxation exists widely in Huzhou and other parts of Zhejiang.

According to a number of owners, there is a greater randomness in the process of specific taxation.

After collecting taxes, some expropriation personnel do not issue formal invoices to the owners, only a receipt is issued. The name on the receipt is only a large "tax" word.

An official in charge of Wuxing District explained that it was only to collect money first, and then to make an invoice later.

In the view of the tax payer, the tax collector does not invoke the bill.

But whether anyone from Zhongmu is private can not be verified.

According to local policies, the "head tax" is imposed on 5 sewing machines. This means that if a small workshop, even if only two machines are required, it should pay taxes on 5 machines. Many owners believe that such a tax is unfair.

Secondly, there is flexibility in the amount determination.

A husband and wife surnamed Zhang had two machines. According to the standard of 5 yuan per unit and 300 yuan per year last year, they should pay 1715 yuan tax, but the tax collector said he and his wife were "not easy", and finally only received 800 yuan.

"Some people buy cigarettes for tax people, or they can pay less than 1000 yuan."

Zhang surnamed said.

Wei Jiang, director of the Department of enterprise management, School of management, Zhejiang University, believes that it is not unfeasible to levy taxes according to the characteristics of workshop production. However, how to estimate the amount of tax and whether the decision-making process is open and pparent is the key.

Jia Kang, director of the finance and Trade Research Institute of the Ministry of finance, analyzes this. For small and micro enterprises, it is impossible to carefully calculate the value added and turnover. Only one line can be roughly drawn, and the local practice has the nature of package tax.

This method is universal in the whole country.

And in weaving, it has been concretely dropped onto the machine.

However, there should be a reasonable starting standard, for example, five units can be set up, but one or two machines will be collected according to five sets, which is unreasonable.

For the tax credentials, Jia Kang believes that although there is no standardized business registration in the small workshop of Zhili, the tax authorities should not have no standardized procedures.

However, there is a duty paid certificate in the collection, how much tax people have taken and how much they have been handed in, so that they can reconciliate the two heads in order to ensure that tax revenue will enter the state treasury.

The general receipt is difficult to prove this, and the irregularities in this area also leave room for tax officials to intercept taxes.

Although the growth of tax revenue is one of the causes of conflicts, the main reason for many owners is that the tax collector is simple and crude in the process of collection.

"If they behave better, they will pay the money."

A Anqing native owner of Beidou village, Wang Mu said.

Later, the official admitted this point. In October 28th, Zhili town announced that "Xu Rongquan, a tax assistant manager, has been dismissed because of his simple work and simple method."

The tax levy just started this year has been halted.

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Industrial upgrading pressure

In the interpretation of Jin Xingen, deputy district head of Wuxing District, the tax increase is due to the need for pformation and upgrading of children's clothing industry.

He said that although the children's clothing industry in Zhili is expanding, it is lagging behind in general, mainly in the production mode of small workshops.

"So far, there are only 20 households whose sales income exceeds 100 million yuan, or more than 20 million yuan.

Most of the rest are family workshops.

In Jin Xingen's view, workshop production not only affects industrial efficiency, but also affects local taxes.

"Weaving children's clothing industry land is 8 square kilometers, about 12 thousand mu, the total annual tax revenue is 173 million yuan, of which children's clothing production enterprises account for about 100 million yuan.

As a matter of fact, the tax paid on every acre is more than 10 thousand yuan per year.

Jin Xingen believes that compared to large enterprises, the tax revenue of the unit area of children's clothing enterprises is very low. He takes the new material of the local listed companies as an example, and the annual revenue per mu land is 180 thousand yuan.

"Another large textile enterprise creates a tax of 740 thousand yuan at the highest land per mu, and has a total of 3.4 million in the ordinary year."

In recent years, Huzhou has been seeking to promote the children's clothing industry in Zhili, hoping to promote industrial upgrading by supporting large enterprises.

Jin Xingen said that the government's efforts have achieved some results, but in general it is not ideal.

"The reason is the existence of a large number of family workshops."

The deputy district chief thinks that large-scale enterprises must have standardized production, and fabrics, printing and dyeing, identification and so on have high standards, but family workshops are often shoddy, and even add black hearted cotton and other bad behavior.

In addition, the family workshop has a great impact on the formal clothing enterprises. "In many factors allocation, the family workshop is in a priority position, such as rent, the surrounding villages are many empty villages, the rental price is cheap, the electricity price is charged according to the household electricity charges, the price is lower than the industrial electricity, so that their products are naturally cheaper than the regular enterprises."

In the logic of local officials, "protecting backwardness is equivalent to limiting the advanced".

They believe that the existence of family workshops has always been equivalent to providing implicit subsidies to this group.

For the needs of industrial upgrading, on the one hand, we should strengthen the strength, and on the other hand we should abolish this implicit subsidy.

"Taxation is one of the most important means. The collection tax should be collected and forced to form a mechanism. If there is no tax revenue, then there is no need for it to exist here. You can move to other areas."

Jin Xingen said.

Wei Jiang, director of the enterprise management department of Zhejiang University, does not seem to hold water.

He believes that industrial pformation and upgrading is not a problem, but it can not be achieved by raising taxes. The government can consider giving farmers better space, such as building large-scale factories, and then renting them to farmers, and encouraging intensive and large-scale production. "Linking taxes to industrial upgrading is far fetched and difficult to play."

Jia Kang also believes that it is not reasonable to link taxes with industrial upgrading.

He said: "the biggest function of such enterprises is to ensure employment, so that everyone can have food to eat."

Foreign population challenge

The anti tax incident in Zhili developed to the later stage, which once became a mutual attack between outsiders and locals. It reflected deeper contradictions.

There are 46 administrative villages and 11 neighborhood committees in Zhili Town, with a total population of more than 30 people, including 100 thousand registered permanent residence population and 200 thousand permanent resident population.

Among the floating population, Anhui is the largest number of people, and Anhui people also live in Anqing.

In weaving, despite the fact that the floating population is larger than the local population, they are mentally disadvantaged.

Locals also have prejudice against migrant population.

After the incident, some netizens sent a message at the southern Taihu forum saying, "I despise and spoil the Anhui people even more."

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In the course of the incident, the war of words continued.

The owner of the Anhui Workshop said that the Audi owner who knocked down nine people on 26 days once said, "it's your Anhui people." they also said that in the process of dealing with the conflict that night, some locals said, "if you don't want to do it, you can go back to Anhui."

These findings, which have not been confirmed, stimulated some people's behavior towards violence.

On the contrary, the smash of Anhui people has aroused the rebound of locals.

On the evening of 28, at 10 o'clock, when the police arrested two people who were involved in the smash action, the crowd in the crowd broke into applause in Anhui.

Qian Wenrong, Professor of Rural Development Research Institute of Zhejiang University, has long been concerned about urbanization.

He said that in recent years, the conflict between outsiders and locals has increased significantly in areas where the floating population is concentrated and needs special attention.

"This is first a conflict of cultural psychological habits.

When foreigners come to a new place, even if the local treatment is fair, they will still feel bullied. "

More importantly, in reality, the lack of institutional protection makes it impossible for the foreign population to have a sense of belonging.

In the Zhili Town, this characteristic is also reflected. It is difficult for the workshops and owners of migrant workers to enjoy public services.

For example, children's enrollment is difficult.

The owner of the family name in the village of Beidou Wang said that his countrymen usually bring their children around their children before they enter school, and send them back to their hometown when they go to school.

Ling Lanfang, chairman of Zhejiang silk road holding group and Huzhou municipal CPPCC Standing Committee, also believe that migrant workers are working on the bottom floor for a long time. Medical treatment, education, housing and other aspects can not get the same treatment with the local residents. These factors make them unable to integrate with the local community. Ling Lanfang,

Once there is wind and grass, randomness and destructiveness will emerge.

"They are farmers in their hometown, and they are vagrants here."

However, because public services involve local financial input, it is difficult for foreigners to enjoy the same public service as locals.

Qian Wenrong believes that in this case, we need to coordinate and coordinate at the central level and increase investment in the most basic social security, such as medical education, so as to achieve unified coverage nationwide.

Two, different parts of the country are subsidized according to different social security standards, which is more operational than the whole government.

On the other hand, Qian Wenrong believed that foreign population should be encouraged and absorbed into the social management system.

Qian Wenrong once visited a case in Zhuji, Zhejiang, where two policemen were invited to participate in local management from the outflow of migrant population, which made the immigrants feel a sense of fairness.

"Institutional design is needed to stimulate their sense of belonging."

In October 29th, due to concerns about safety, he surnamed Wang's mother and his cousin sent him back to his hometown. He said he might leave the Zhili next year.

Ling Lanfang said that it was the foreign population that brought the prosperity of Zhili. Once they left, prosperity lost their foundation.

According to preliminary estimates, the whole town of Zhili stopped working for one day, and the economic loss was 100 million yuan.

Ling Lanfang believes that the tax wave once again shows that we need to abandon the existing mode of development and take the road of rational division of labor in industrial clusters.

"To turn migrant workers into formal industrial workers and enjoy the dignity of labor, so that entrepreneurs, workers and managers will be motivated."

The Wuxing district government has also realized the seriousness of the problem.

After the occurrence of the tax disturbance, the district government sent almost all the cadres to the villages and communities, and comforted them from door to door, hoping that they would return to work as soon as possible and keep them.