Tax Burden Is Heavy And Manufacturing Pformation Is Difficult. Li Dongsheng Proposes Tax Relief.

On March 4, 2016, when the two sessions were held, NPC deputy, chairman of the TCL group and Li Dongsheng CEO put forward the two proposals on speeding up the legislative process of VAT and the proposal to abolish the urban maintenance and construction tax and the additional education fee.

Li Dongsheng believes that the economic situation at home and abroad has become increasingly severe last year, and economic adjustment and difficulties will continue for some time.

Faced with the challenges brought by changes in the global economic environment, Chinese enterprises should adapt themselves to changes, constantly adjust themselves, and greatly enhance their competitiveness so as to gain a foothold for development.

In the proposal, Li Dong Sheng, in the light of the development of China's manufacturing industry, put forward proposals to reduce the value added tax rate of enterprises, abolish the proposal of urban construction tax and education fee surcharge, and compare the horizontal and vertical development contrast of manufacturing industry. It suggests reducing the burden for manufacturing enterprises, concentrating resources to enhance the R & D power of enterprises, thereby enhancing their core competitiveness.

In recent years, with the return of manufacturing industry in the United States, 4 of Germany's industry and 2025 of China's manufacturing industry, industrial capacity has been taken seriously by the country. Manufacturing as the backbone of China's economy has once again returned to public view.

However, due to the characteristics of high cost, thin profit and heavy tax burden, especially the heavy tax burden, the cost of manufacturing occupies a certain extent restricting the development of manufacturing industry.

Take value-added tax as an example, at present, China's value-added tax is based on the Provisional Regulations on value-added tax of People's Republic of China promulgated in December 13, 1993 and revised in November 5, 2008. The highest tax rate is 17%, far higher than that of countries directly related to China's manufacturing industry.

Product prices are weaker than those of overseas markets.

In addition to the high value-added tax, China's manufacturing industry also bears a variety of surcharges, which are inconsistent with the trend of the times.

Statistics show that under the background of global economic slowdown and insufficient market growth, the average profit margin of China's manufacturing industry is less than 2%.

The proportion of manufacturing surtax, including urban construction tax, education fee addition and local educational attachment, accounts for nearly 0.5% of sales revenue, accounting for 1/4 of the average profit.

For the manufacturing industry with such low profit margins, the tax burden is too heavy.

In fact, the proportion of additional tax to financial revenue is not high. From 2011 to 2014, the proportion of urban construction tax in the national fiscal revenue remained at around 2.5%, and the additional amount of education fees was even smaller.

It can be said that the abolition of the additional tax has little effect on the national revenue.

However, the abolition of the additional tax will play a huge positive role in the development of domestic industry, help China's economic restructuring and enhance the global competitiveness of Chinese enterprises.

Excessive tax burden will further reduce the small profits of China's manufacturing industry, so that under the background of the global economic slowdown, problems such as insufficient endogenous investment power of enterprises will impede the restructuring and pformation of the manufacturing industry in the future.

Take TCL group as an example, in recent years, TCL has continuously increased R & D investment and has become the third largest Chinese patent application enterprise in the world.

Next, it will strengthen basic research in the next generation of new display technology and develop more valuable invention patents, which is a great investment.

If the tax burden can be reduced, it is of positive significance to enhance the core competitiveness of enterprises.

In response to this situation, Li Dongsheng proposed that the state could reduce the burden on manufacturing enterprises by reducing the value-added tax rate of manufacturing industry, or abolish the urban construction tax and education fee addition, leaving more room for development for enterprises, thereby promoting enterprises to increase investment in research and development and enhance the core competitiveness of enterprises.

In terms of value added tax, Li Dongsheng suggested accelerating the legislative work of value-added tax on the agenda of the 12 NPC, and proposed a proposal to reduce the value-added tax rate of the manufacturing industry from the current 17% to 12%.

It also suggests that the relevant provisions on the standards of examination and approval of luggage carried by incoming passengers should be implemented in accordance with the regulations issued by the General Administration of Customs in China.

On the one hand, expanding domestic consumption and increasing national tax revenue; on the other hand, it is conducive to the development of domestic businesses, especially to increase sales of domestic products in manufacturing industry, thereby expanding the tax base and countering the impact of tax reduction on fiscal revenue.

At the same time, Li Dongsheng also proposed to abolish the enterprise surcharge. He said that the abolition of two additional taxes on urban construction tax and education fee could effectively reduce the burden of enterprises, especially on the part of industrial enterprises.

For the abolition of the additional tax, Li Dongsheng suggested that the local government should take part of the funds from the land pfer fund for urban maintenance and construction, and put the cost of education into the normal budgets of all levels of government.

2016 is "

"The first year of planning is also a key year for China to make 2025. The NPC deputy Li Dongsheng holds the spirit of perseverance and perseverance, focusing on the pformation and development of Chinese enterprises and the practice of TCL group in the past 35 years. It has always made suggestions for China's industrial development, and has been working hard for Chinese enterprises and China's economic development.