Tax Reduction And Tariff Reduction Will Bring Substantial Benefits To The Textile Industry.

When the two sessions were held in March 2019, the state continued to implement a massive tax cut and fee reduction, like "spring thunder, and wake up."

The tax reduction measures for domestic manufacturing industry also give textile enterprises the first big package after spring.

"This year, we are determined to carry out a larger tax reduction.

The value added tax and the unit social security payment rate will be reduced, and the dividends of tax reduction and reduction will be close to two trillion yuan.

This can be said to be a very important key measure to deal with the downward pressure on the current economy.

In April 1st, value added tax will be reduced, and social security rates will be lowered in May 1st.

During the two sessions, Premier Li Keqiang's response to the tax cuts and fees reduction was a wave of waves, which triggered a great deal of discussion.

Online and WeChat circles are discussing the impact of this tax cut on enterprises. They even carefully calculate how much tax per ton of yarn can give enterprises to reduce. Of course, the answers are quite different.

We have heard and seen some comments on external evaluation. Some think that the value added tax fall by 3% is not great. It has limited impact on textile enterprises, and has limited impact on the industrial chain. Some think that the reduction of tax rate really lightens the burden of enterprises.

What kind of benefits can enterprises get from the measures taken by the state to reduce taxes and reduce fees?

What impact will it bring to cotton spinning industry?

In order to fully understand this problem, the reporter went to Henan textile gathering area to visit and understand.

As a major textile Province in China, Henan has 1580 textile enterprises, and the amount of spinning is very impressive every year. According to the National Bureau of statistics, Henan's yarn output in 2018 was 3 million 460 thousand tons, ranking third in the country.

Therefore, Henan textile enterprises have certain representativeness throughout the country.

The so-called value added tax refers to a kind of turnover tax which is based on the value added in the pfer process.

Popularly speaking, the tax imposed on the value-added part of the product is taxed only if there is added value.

Take the Henan province textile enterprise value-added tax deduction method as an example, the cotton combing and combing unit consumption is calculated at 1.16 and 1.42 respectively, the cotton price is 15600 yuan (including tax price), and the cotton yarn price is 23000 yuan (including tax price). According to the previous 16% taxation, part of the output tax is required to be paid 23000/1.16*0.16=3172 yuan, the part of which is required to pay tax is 15600*1.16/1.16*0.16=2496 yuan, and the sales amount is 3172 yuan - 2496 yuan is 676 yuan, which means that every production of 1 tons of cotton yarn is worth 676 yuan, which is calculated according to the value added tax 16% standard.

Since April 1st, the state has stipulated that the value added tax will be reduced by 3 percentage points. We also take the above-mentioned cotton and cotton yarn prices as an example. According to the 13% levy, part of the duty on the output tax is 23000/1.13*0.13=2646 yuan. The tax on the part of the production tax is 15600*1.16/1.13*0.16=2082 yuan, and the sales amount is 2646 yuan - 2082 yuan is equivalent to 564 yuan, which means that the value added tax for every ton of cotton yarn produced by the enterprise is 564 yuan.

This means that the tax rate will be reduced by 676 yuan -564 yuan =112 yuan per ton of cotton yarn per ton after the tax rate dropped by 3 percentage points, and the amount of tax per ton of cotton yarn should be reduced by 16.6%.

Such a magnitude of tax reduction is really great.

If Henan enterprises produce combed cotton yarn, the price per ton of cotton is 16000 yuan, and the selling price per ton of cotton yarn is 28000 yuan. According to the 1.42 unit consumption calculation, or in accordance with the above method, 3 percentage points of the reduction tax will be reduced by 121 yuan per 1 tons of cotton yarn per production, and the reduction of the amount of tax per ton of cotton yarn is 16.6%.

The above is only a theoretical calculation method, because the price of cotton and cotton yarn sold by enterprises is in dynamic change.

In addition, the higher the value of an enterprise's product, the greater the added value, the more the value added tax will be reduced, the lower the product, the smaller the added value, and the smaller the value added tax will be.

Overall, the reduction of tax burden on textile enterprises in Henan is basically around 100 yuan / ton.

In order to facilitate the calculation, suppose that every enterprise produces 1 tons of cotton yarn less than 100 yuan before paying taxes. According to the scale of the 50 thousand enterprises and the production of cotton yarn per month for 400 tons, the value added tax can be paid less than 40 thousand yuan a month, which is 480 thousand yuan a year.

Take 200 thousand ingot scale enterprises as an example, the monthly output of 1600 tons of yarn can be paid less than 160 thousand yuan per month, or 1 million 920 thousand yuan a year.

Do you think the tax cuts are big or small?

Another point of view is that over the past 15 trillion yuan tax revenue in China last year, the value added tax contributed nearly 40%, about 6 trillion yuan.

As the largest tax category in China, the value added tax rate is reduced by one point, and the tax reduction is hundreds of millions of dollars.

Professor Hu Yijian of Shanghai University of Finance and Economics said that it was estimated that the 16% tax rate of VAT would be reduced to 13% and the tax would be reduced by about 630000000000 yuan.

According to the 3 million 460 thousand tons of yarn production in Henan, the average annual tax burden of textile enterprises in Henan alone is reduced by 346 million yuan.

I think after the comparison of the above latitudinal data, for countries and enterprises, the magnitude of tax reduction is self-evident.

For enterprises, accumulate a lot of money and accumulate sand and become a tower; for the country, it is a reform decision that is inward and vigorous.

A textile manufacturer in Henan told reporters that in March, many downstream enterprises had paid advance payment in advance to sign contracts for purchase and sale in order to deduct the VAT more, resulting in a surge in the volume of orders for textile enterprises. Some of the textile enterprises only paid more than 20 days for advance payment orders, but as the April 1st approached, the situation gradually cooled.

Of course, the benefits of enterprises are far more than that.

Liu Kun, Minister of finance, said on 24 th: "China will reduce the proportion of basic old-age insurance unit payment for urban employees from May 1st to 20%, and reduce the proportion of corporate social security contributions to 16%.

Experts predict that the reduction of social security rates will reduce the cost of enterprises by 800 billion yuan.

In the course of the investigation in Henan, the reporters also made careful calculations on this. We take a spinning enterprise in Luohe as an example. The number of employees is 350, the annual output of the yarn is 8000 tons, and the enterprise pays the old-age insurance for the employees in accordance with the local social average wage of 60%. At present, the enterprise pays 4200*0.6*0.2=502 yuan for employees every month, and the social security rate falls to 16%. The result is 4200*0.6*0.16=403 yuan, and the social security rate falls 4 percentage points, which can save 100 yuan per person per month, and the total annual savings is 400*100*12=42 yuan.

Take the enterprise as an example, by reducing taxes and lowering fees, it can save 420 thousand +80 million =122 per year.

After reducing taxes and lowering fees, a large scale enterprise will enjoy so many benefits.

If the whole country is concerned, it is estimated that the burden of enterprise tax and social security payment will be reduced by nearly 2 trillion yuan in the whole year.

A number of enterprises surveyed in Henan said that the tax cut and fee reduction would lighten the burden of enterprises and raise the level of profitability, so as to facilitate the light load of enterprises. At the same time, the whole operation cost of cotton spinning industry chain will also decline, and enhance the competitiveness of enterprises in the international market.

Professionals believe that reducing the value-added tax rate and social security premium rate can significantly reduce the tax burden on enterprises, and have a positive impact on manufacturing enterprises.

In fiercely competitive industries, the dividends of partial tax cuts will also be passed on to the end consumers through product price cuts, thereby stimulating demand and boosting corporate earnings growth.

However, there are also concerns about the Henan enterprises concerned that although the tax reform is vigorously carried out at the national level, the effect of the reform will be discounted after the grass-roots line.

In March 26th, Chen Runer, governor of Henan, went to the provincial taxation bureau and the Provincial Social Security Bureau to investigate the work of tax reduction and reduction, and held a symposium respectively. They stressed the need to implement the decisions and arrangements of the Party Central Committee and the State Council in an all out way, and to promote the policy of reducing taxes and lowering fees on time to guarantee the effectiveness of landing.

This undoubtedly gave the enterprise a reassurance.

Coincidentally, since last year, influenced by the Sino US trade, the consumption and export of cotton textile in the lower reaches of China has been weak, which has a great impact on cotton prices. Through this tax cut and fee reduction reform, it will play an important role in reducing the operating cost of cotton spinning industry chain, stimulating market vitality, enhancing the competitiveness of domestic textile enterprises, and hedging the fluctuation of international export markets.

In particular, it will also play a very positive role in stabilizing cotton prices, increasing cotton consumption and ensuring healthy and sustainable operation of the cotton market.