Shenzhen Leather Enterprises Appealed For A Further Tax Cut

In the two sessions of Shenzhen, the financial crisis is a hot topic.

How big is the impact of the financial tsunami on Shenzhen enterprises? Are there any layoffs and pay cuts? How can entrepreneurs organize self-help? What are the expectations for government support? The "two sessions" gap, our reporter interviewed ten NPC deputies and CPPCC members from the business community.

They generally feel the chill brought by the financial crisis, especially in the export manufacturing industry.

In order to pass the "cold winter", enterprises generally adopted the strategy of reducing expenses and lowering salaries. Some enterprises admitted that "if the crisis is intensified, we will not eliminate half of the redundancies".

There are also opportunities for enterprises to seize opportunities in the crisis and seize the time to cultivate their internal strength.

For the government's expectation, the biggest voice of enterprises is tax reduction.

What support should the government provide under the economic crisis? The first call for enterprises is tax reduction.

Guo Shiping, director of the Financial Research Institute of Shenzhen University, believes that tax cuts should be reduced especially for small and medium-sized enterprises.

Cha Zhenxiang, Dean of the school of economics, Shenzhen Polytechnic, believes that tax cuts can be understood and can enhance competitiveness, but tax cuts are more complicated. For example, China's accession to the WTO will be prosecuted for dumping too much tax.

Moreover, tax reduction is not easy. The national tax is a national unity. Shenzhen has no right to adjust. The land tax is also because Shenzhen is a separate city, and the tax revenue should be directly turned over to the state. It is also impossible to adjust itself. What we need to do now is to make use of Shenzhen's comprehensive reform pilot right and push the local tax reform right, so that we can adjust the tax rate independently.

What is the impact of the crisis? "The entire industry of leather goods has shrunk 40%-50%, and several Hong Kong funded enterprises have been on holiday, and only half of them can operate normally."

The impact of export is undoubtedly the most direct and obvious. Wen Lihua, chairman of the Shenzhen Municipal Committee of CPPCC and chairman of Tuwei leather products Co., Ltd., said that their orders were reduced. Last year, a company in Europe had canceled two containers that had already been finished and lost hundreds of thousands of yuan. The whole industry has shrunk by 40%-50%. Several Hong Kong funded enterprises have been on vacation, and only half of them can operate normally. Three or four of her colleagues have gone bankrupt.

Zhai Xiaoping, managing director of the Shenzhen Municipal Committee of the CPPCC and the chief executive of the China Silk Corporation, said that they all made export products, and their orders were reduced by more than 20%, mainly from the US and Europe. What's more worrying to them is that the increase in orders in the first quarter of this year is not obvious, mainly in the two quarter.

Even in the face of the domestic market service industry, also feel the chill of the crisis.

Wu Jinfu, deputy general manager of the Municipal People's Congress and the new Taoyuan Hotel, said that the hotel only reduced its income by about 9000000 yuan last year, and the song and dance hall was even worse.

After a few years, the number of hotel CEOs has been knocked down. Compared with the same period last year, the income of the 1/3. Municipal People's Congress and Chen Sulan, general manager of South China Waterfront Hotel, said that the total turnover of the hotel has dropped by 15%. The two hotels have dropped by more than 20%, and the total turnover of the entire Shenzhen hotel has dropped by 10% to 20%. The hotel restaurant has dropped 20% to 30%, and the entertainment has dropped to the top. As far as the CPPCC member of the 30%-40%. city and the general manager of Shenzhen city travel, Wu Bin are concerned, the impact on the tourism industry is greater. The consumption of the market is decreasing, the number of people who go out to travel is less, the travel expenses have dropped by a few percentage points, and the profits have dropped two to 30%, and many enterprises in the whole industry have already lost money.

In the auto sales industry, Yang Fuqiang, chairman of the Municipal Committee of CPPCC and chairman of the automobile company, also complained repeatedly. He said that Guang Wan deep car dealers were on the edge of losses. The crisis led to the cancellation of the plan for those who wanted to buy the car, the big displacement to buy small displacement, the new car to buy new cars, the whole chain was sliding down, and his brand sales fell by four or five.

When can we see the bottom of the economic trend? "The first wave of subprime mortgage crisis hits finance, the second wave hits the real economy, the third wave is the impact on the service industry, and the third wave should be bottomed out."

Liu Yupu, Secretary of the municipal Party committee of Shenzhen, gave the bottom: according to the latest statistics of relevant departments, last year, Shenzhen closed 903 industrial enterprises, including 101 Enterprises above Designated Size, accounting for 1.4% of the industrial enterprises above Designated Size, involving 3 billion 100 million yuan of industrial output value, involving 700 million yuan of industrial added value, accounting for only about 0.2% of the total industrial output of Shenzhen, involving 90 thousand of the total number of workers, 3% of the total number of workers, and most of the laid-off workers concentrated in two districts of Longgang and Baoan. The total number of workers laid off in Shenzhen was 700 million.

What is the impact of the financial tsunami on Shenzhen? What is the future economic trend? Cha Zhenxiang, Dean of the school of economics of Shenzhen Polytechnic, has made some investigations. He believes that the impact on high technology is not nothing, but is much smaller than traditional industries (such as incoming processing), because high technology is producing its own products to sell abroad, the initiative is in its own hands, the foreign consumer market is shrinking, and the demand for high-tech products is shrinking, but it will also have an impact.

What is the impact of the economic crisis? He believes that the first wave of subprime mortgage crisis has impacted on financial institutions and financial related investment companies. The second wave is the real economy, which has not yet been bottomed out, because banks themselves have many bad debts, loans have been reduced, consumption has shrunk, industrial production has been affected, and many people have been laid off from unemployment. The third wave is the impact of Gaestgiveriet Hotel tourism and other service industries, and the third wave should be bottomed out.

How can enterprises help themselves? "Deputy high and senior positions have arranged unpaid breaks, but if the situation worsens, some people will inevitably lose their jobs."

Entrepreneurs have said that compressing costs is a more common way to save themselves, but perhaps it is because the topic is more sensitive to whether or not layoffs and salaries are cut. Entrepreneurs or making statements will not cut down their salaries or avoid them.

Wu Jinfu, deputy general manager of the new Taoyuan Hotel, said that in order to cope with the crisis, the main reason is to cut down expenses. The dance hall has stopped because there is basically no business and the Chinese restaurant has stopped.

"At present, we are still on the sidelines, striving for no layoffs and pay cuts. Because of the better business of the new year's Eve, the employees did not go home, but they would not be able to get rid of their conscience after the year. But if this continues, and if the impact is greater in 2009, there will be no reduction, or even half the reduction."

Chen Sulan, general manager of Zhongnan Waterfront Hotel, said that although the industry leaders had overturned their efforts last year to fight for layoffs and pay cuts to the society, they also arranged unpaid breaks for the above positions. However, if the situation worsened, there would inevitably be some "natural wastage".

Yang Fuqiang, chairman of the automobile company, said that the 10%-20% was eliminated naturally, and there was no mandatory layoff because it could not be laid off.

Wu Bin, general manager of Shenzhen City International Travel Agency, made a firm decision not to lay off workers, but also said that some employees took basic pay leave and unpaid leave, including their own enterprises in the two quarter of last year to adjust their salaries to prevent their salaries, but later the situation was not so bad at the end of the year.

Wen Lihua, chairman of Shenzhen Tuwei leather products Co., Ltd., said that after the expiration of the employee contract, the contract will not be renewed.

The city of Shenzhen has also proposed that enterprises do not have to cut wages and cuts as far as possible, but from the perspective of enterprise compression costs, it seems inevitable.

Cha Zhenxiang thinks that the layoffs of enterprises are considered reasonable from the economic point of view, but the layoffs and salary cuts are difficult to pfer. Enterprises can now change their thinking and make the reduction of non layoffs equal to "public welfare undertakings".

How can we find opportunities in crisis? "Under the influence of the crisis, some small businesses are difficult to sustain, and the market scale will further concentrate on large enterprises and accelerate mergers and acquisitions."

The self adjustment of enterprises also presents different ideas in different industries.

Wu Bin, general manager of the Shenzhen municipal brigade, said that at present, the cost of CF is not related to direct production. As the highest level of the company, the company has no direct dial phone calls. The cost of water, newspaper and magazine subscriptions is all compressed. In terms of production arrangements, capital input will immediately bring about growth, increase investment, tighten investment and ensure the main business.

Wen Li Hua regards danger as a machine. Now their work is to practise internal strength, increase their income and reduce expenditure, and reflect on the lack of management cost in the past.

"If I don't fail in this crisis, I will still thank it for helping me do good deeds," she said.

Leather industry is also doing industry self-help. In February 21st, on the opening day of the "two sessions" in Shenzhen, 2009 Shenzhen international fur leather exhibition was held in the Convention and Exhibition Center, and more than 300 garment enterprises participated in the exhibition.

Liu Weidong, Secretary General of Shenzhen Leather Industry Association, said that the export of fur and leather products has been greatly reduced due to the financial crisis. The export oriented fur fur manufacturing enterprises in China are in trouble. This exhibition is intended to help the struggling garment enterprises learn to walk on "two legs", so that these enterprises can take account of domestic and foreign markets to better cope with the financial crisis.

Zhang Simin, President of Hai Wang Group, is also regarded as "machine". He believes that because the demand for medical market is magnified, it should be more dangerous than the whole.

Under the influence of the crisis, some small businesses are not doing well and are difficult to sustain. The market scale will further concentrate on large enterprises and speed up mergers and acquisitions.

What do you want the government to do to support it? "Can we support enterprises like the SARS period? For example, the electricity price will be half price in half a month, the tax revenue will be reduced by half, and the health inspection fee will be reduced."

What support should the government provide under the economic crisis? The first call for enterprises is tax reduction.

Wu Jinfu, deputy general manager of the new Taoyuan Hotel, said he wrote the N report to the government, hoping that the government would reduce tax revenue in terms of Taxation, industry and Commerce and health inspection.

Gan Xiaohong, chairman of the Municipal Committee of CPPCC and general manager of Jingyuan industry, also said that every enterprise has tax, the most practical in terms of taxation. Business tax or value added tax should be reduced compared with the original 2%-3%.. Wu Bin, general manager of Shenzhen international travel agency, directly said whether it could support them like the SARS period, for example, half a half of the electricity tariff and half of the tax revenue.

Export enterprises also want to get support in taxes and fees. Zhai Xiaoping, director general of Shenzhen Hua Si enterprise shares, hopes that the export tax rebate rate will be higher. It will fall back to 17%., general manager of Hongkong Zhongxing communication company, Zhou Susu. He hopes that the government should return taxes and encourage enterprises to invest. According to the revenue of local finance, we should make a few points in the local tax to encourage enterprises to invest, drive profits and increase employment, and form a virtuous circle.

Guo Shiping, director of the Financial Research Institute of Shenzhen University, believes that enterprises need support from the government to tide over difficulties, especially for small and medium-sized enterprises.

Nan Yun Lou, a researcher at Shenzhen Business Research Association, also believes that domestic and foreign enterprises can be adjusted to 15% of the tax rate, and the proposed business tax is abolished.

Cha Zhenxiang believes that the proposed tax cuts can be understood and can enhance competitiveness, but tax reduction is more complicated. For example, China's accession to the WTO will be prosecuted for dumping too much tax. At the same time, excessive tax relief and operation will be difficult. Enterprises can communicate with the government.

However, tax reduction is not easy. The information from the tax department of Shenzhen is that the national tax is a national unity. Shenzhen has no right to adjust, and the land tax is also because Shenzhen is a separate city. Taxation should also be directly turned over to the state. It is also impossible to adjust itself. What we need to do now is to make use of Shenzhen's comprehensive reform pilot power to promote the right of local tax reform, so that we can adjust the tax rate independently.

Tax reduction is only the first step in reducing the burden, and more importantly, how to survive.

This year's CPPCC session No. 1 is concerned with the development of small and medium-sized enterprises. 20 concrete proposals are put forward, and a number of suggestions are concerned about the financing difficulties of SMEs.

Zhang Shuguang, Deputy Secretary General of the Municipal Committee of the Chinese people's Political Consultative Conference (CPPCC), suggested that banks should promote cross-border mortgage business and expand the sources of funds for SMEs.