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    Rain In Time! In 2019, The Manufacturing Tax Rate Dropped From 16% To 13%.

    2019/3/6 10:59:00 236

    In 2019The Manufacturing SectorThe Tax Rate.

    The drop and fall of the current tax rate in manufacturing industry is a substantial concession to the real economy, which will enable more enterprises to go into battle lightly.




    On March 5th, at the two national meetings held in the country, Premier Li Keqiang of the State Council said in his report on the government's work that a larger tax reduction would be implemented in 2019, both inclusive tax reduction and structural tax reduction, with a focus on reducing the tax burden of manufacturing and small and micro enterprises.

    In the implementation of tax reduction and tax reduction, we will further deepen the value-added tax reform, reduce the current 16% tax rate to 13% in manufacturing and other industries, and reduce the current 10% tax rate to 9% in pportation, construction and other industries, ensure that the tax burden of major industries is significantly reduced, and maintain the tax rate of 6% first tier. However, we have adopted complementary measures such as increasing tax deduction for production and life service industries to ensure that all sectors' tax burden has not been increased, and we have continued to push forward the third and two tax rates.




    In fact, as long as the executive meeting of the State Council was held in March 2018, the value-added tax rate of manufacturing industries and other industries has been reduced from 17% to 16%, and the value-added tax rate of pportation, construction and other industries has decreased from 11% to 10%.

    This time, the re adjustment of VAT also made clear the determination and strength of the government to lighten the burden of enterprises and stimulate the vitality of the market.




    In response to this, people's daily commented that the fall of big tax cuts is a substantial profit to the real economy and will enable more enterprises to go into battle lightly.

    In 2018, because of the 1 points of the value-added tax rate, the tax reduction would be reduced by 179 billion 400 million yuan in 10 months.




    According to the government's work report, reducing taxes and increasing social security burdens can reduce the burden of corporate tax and social security payments by nearly 2 trillion yuan a year, and surpass many people's expectations, especially for manufacturing and other industries. This is a long-awaited timely rain.




    The most direct effect of tax reduction is to increase the profit margin of enterprises.

    The manufacturing industry with the biggest tax reduction is a highly competitive industry with a profit margin. In recent years, the biggest problem of many enterprises is: high cost and profit margins.

    Even the NPC deputies Lei Jun also said: "the overall net profit margin of millet hardware is not more than 5%".

    In addition, the cost of tax is one of the costs in addition to financing cost, employing cost, land cost and logistics cost.




    As a result, cost reduction constitutes one of the core connotations of "three down, one down and one subsidy".

    Since last year, how to reduce taxes and reduce costs by enterprises is the key concern of the whole country.

    From last year's value added tax rate reduced by 1 points, to the beginning of this year, the new tax reduction measures for small and micro enterprises, and the major tax reduction measures to release the universal tax reduction and structural tax reduction today, the frequent tax cuts show that the government's reform commitments are steadily being fulfilled, and the focus of reform has been put to the practical problems of enterprises.

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