Zhao Linzhong: Garment Enterprises Need To Reform The Way Of Taxation.

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Representatives and members of the industry actively perform their duties. Their motions and proposals focus on alleviating corporate taxes, healthy development of small and micro enterprises, employment problems of enterprises, and how to make innovations with the government's efforts.

Zhao Linzhong, chairman of the National People's Congress and chairman of the board of directors of Fu run holding group, said:

clothing

As a labor-intensive industry, the industry also has the characteristics of low profit rate of labor-intensive industries, which belongs to the small profit industry. The current turnover tax system makes heavy burden on the clothing industry.

According to the survey conducted by the China clothing association, the average annual tax revenue of clothing enterprises is 8.32% of the total operating revenue, while the average sales profit rate of Enterprises above designated size is only 5.75%. In particular, the total annual tax paid by processing enterprises is usually higher than their after tax profits, some of which are 2~3 times higher than after tax profits.

At the same time, some tax policies that have been adjusted in recent years have also increased the burden of enterprises to some extent.

clothing

The industry is undertaking more and more social responsibilities in terms of labor and social security in the lower level of the industry's profit rate. According to the current tax collection policy and the way of calculating taxes and fees, 17% of the "value-added tax" will be added to these social contributions and unfair to the labor-intensive industries.

In this regard, I suggest: change the current clothing enterprise tax calculation method, the wages, insurance and other expenses into "

Value added tax

"Before taxes".

For labor intensive industries, all or part of the wage cost will be paid before tax, and the wage cost can be calculated according to the number of employees' pension insurance paid by enterprises. For example, the total amount of wages calculated by enterprises is the number of workers' Endowment Insurance and the local minimum wage.