Physical Retail Industry Is Facing A Dilemma Of Continuous Decline In Development Speed.

Nothing is more important than corporate tax cuts and lightening burdens.

"Reducing taxes and reducing taxes can further stimulate the vitality of enterprises."

Wang Tian, chairman of the National People's Congress and chairman of the BBK commercial chain Limited by Share Ltd, pointed out in the proposal to improve the management of tax and fee in the consumption industry and promote the supply side reform of the consumption industry. It is pointed out that the reform of taxes and fees and the continuous development of the retail industry should be one of the important aspects of the supply side reform in China.

When the two sessions were being held in 2016, representatives from the "two sessions" from the retail industry almost invariably submitted proposals and motions for the government to implement tax reduction and lightening the burden on commercial enterprises.

The background of these proposals and proposals is in recent years, with the slowdown in macroeconomic growth and weak consumption.

With the channel diversion, upgrading of consumption and continuous high cost, the physical retail industry is facing the dilemma of continuous decline in development speed.

Supply side reform has become a key point in China's current reform.

Traditional circulation industry, as an important link connecting production and consumption, has become an important undertaker of supply side reform.

However, the retail chain is facing the pressure of rising costs, declining profits and online shunting.

According to the China Chain Store Association's survey of the top 100 key chain enterprises, the sales volume of Supermarkets Based on business status increased by 5.4% in the 1-9 months of 2015, slightly higher than the 5.1% growth rate in 2014.

The gross profit rate was 14.4%, lower than the industry average of 16.4% in 2014.

In the first half of the year, sales in department stores increased by 1.8%, but those with negative gross margins accounted for 55%.

The labor cost of enterprises increased by 12.4% compared with the same period last year, and the electricity and water expenses increased by 9.6% compared with the same period last year. The rent rose by 16.2% over the same period, which is far higher than the sales growth rate of 5.4%, and the enterprises are facing unprecedented difficulties.

Zheng Xiaoyan, NPC deputy and chairman of Hefei's 100 largest board, also pointed out in the proposal that under the high tax burden, the contradiction between the capital operation of enterprises has intensified, and the internal driving force of enterprise input, technological pformation and technological innovation has been seriously affected, and the sustainable development ability and market competitiveness of enterprises have also been greatly affected.

Therefore, how to reduce the burden of chain retail entities and support the development of chain retail entities is of vital importance to the overall economic development of the country.

Including representatives of Wang Tian, Zheng Xiaoyan and Li Xiaohong, chairman of Jiahui group, Huang Yuqing, general manager of Henan Wan Guo Yuan Industrial Group Co., Ltd., and Han Yuchen, chairman of Handan sunshine chairman, all of them put forward proposals to reduce VAT on fresh agricultural products and some foods.

In March 7th, the China retail business association organized the Forum on the supply side of the two sides of the retail trade forum. Wang Tian said that with the gradual improvement of people's living standards, these products have been changed from high-end products to necessities, and become the daily dishes of the people's table.

It is hoped that the state will expand the scope of duty-free commodities and reduce the duty rate of fruit, aquatic products and products other than pigs, cattle, sheep and poultry from 13% to 0.

The representatives of the NPC and CPPCC members also mentioned in the motion that the chain enterprises should be the old problem of unified tax payment nationwide. As long as more than 10 years ago, the NPC deputies and CPPCC members of the industry had mentioned this phenomenon many times during the "two sessions", but they have not been solved until today.

In addition, delegates want to reduce the value-added tax rate of food, including rice, flour, grain, oil and other livelihood necessities, from 17% to 10%.

"Tax cuts can greatly stimulate the vitality of the private economy, and at the same time drive.

Sales bring benefits to producers.

If we can reduce taxes and put it into practice, we will effectively stimulate consumption and promote the growth of social welfare products around 3%.

Wang Tian said: "the contribution of the service industry to the overall economy has reached more than 66%, and tax reduction can further stimulate consumption, which is very beneficial to the economy and people's livelihood."