The New Policy Of Reducing Taxes And Lowering Fees Has Been Put Into Effect.

After the two sessions this year, the state has implemented massive tax cuts and fees reduction. In the "big meal" of reducing taxes and lowering taxes, deepening the value-added tax reform is undoubtedly the "main course", and the real economy is the most important service object in this "main course".

The series of policies to deepen the value-added tax reform was implemented in April 1st. The tax reduction and reduction measures related to the domestic manufacturing industry are closely related to the textile enterprises. Some people think that the enterprise value-added tax fall by 3% is not big, it is good for spinning enterprises, and has limited impact on the industrial chain; others think that the tax rate reduction really lightens the burden on enterprises. So what are the impacts of the tax reduction measures on cotton textile industry this time? How much benefit can cotton spinning enterprises get from it?

Value added tax cut for textile enterprises to reduce burden

Value added tax (VAT) refers to a turnover tax which is based on the value added in the spanfer process. Experts say that in a popular way, the tax imposed on the value-added part of the product is taxed only if there is added value.

For cotton spinning enterprises, take the Henan province textile enterprises value-added tax deduction method as an example, according to the price of cotton per ton of 15600 yuan (including tax price), the price of cotton yarn is 23000 yuan (including tax price), the original value-added tax is 16%, according to the calculation, every enterprise produces 1 tons of cotton yarn to pay the value-added tax is 676 yuan.

Since April 1st, the state has stipulated that the value added tax will be reduced by 3 percentage points. The above cotton and cotton yarn prices are taken as an example. According to the proportion of 13%, the value added tax of every 1 tons of cotton yarn produced by the enterprise is 564 yuan. This means that the tax rate will be reduced by 112 yuan per ton of cotton yarn per ton of production, and the reduction of the tax per ton of cotton yarn will be 16.6% after the tax rate dropped by 3 percentage points. Obviously, such a magnitude of tax reduction is not small.

For the calculation results, the industry said that the above is only theoretical calculation method, because enterprises purchase cotton and cotton yarn sales prices are in a dynamic change. In addition, the higher the product is, the higher the added value is, the more the value added tax will be reduced, the lower the product is, the smaller the added value is, 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.

Suppose that every enterprise produces 1 tons of cotton yarn less than 100 yuan before, then how much can the yarn enterprises pay less value-added tax a year? In this regard, experts have calculated such an account for enterprises. According to the size of the 50 thousand ingot enterprises, the monthly cotton yarn production is 400 tons, and the monthly value added tax can be reduced to 40 thousand yuan, which is 480 thousand yuan a year. Taking 200 thousand spindles enterprises as an example, the monthly production of 1600 tons of yarn can be reduced by 160 thousand yuan per month, and 1 million 920 thousand yuan a year.

Hu Yijian, a professor at Shanghai University of Finance and Economics, said that from a national perspective, it was estimated that the 16% rate of value added tax would be reduced to 13% and the tax would be reduced by about 630000000000 yuan. According to the calculation of 3 million 460 thousand tons of yarn production in Henan Province in 2018, the average annual tax burden of textile enterprises in Henan alone was reduced by 346 million yuan. For countries and enterprises, the magnitude of tax cuts is self-evident. For enterprises, accumulate a lot of money, accumulate sand and become a tower.

It can be seen that the series of policies to deepen VAT reform implemented in April 1st can be regarded as the first big gift package for yarn enterprises after spring. A head of a textile enterprise in Henan said that in March, many downstream enterprises had paid advance payment in advance to sign a purchase and sale contract in order to deduct the value added tax more, resulting in a surge in the volume of orders for textile enterprises. Some textile enterprises only went through more than 20 days' advance payment orders, but since April, this situation has gradually cooled down.

Reduce taxes, lower fees and increase investment confidence

The reduction of value added tax will benefit the yarn enterprises. Of course, the benefits from enterprises are far more than that. A few days ago, Liu Kun, Minister of finance of China, said: "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.

Taking a textile enterprise in Luohe as an example, the number of employees in the enterprise is 400, the annual output of the yarn is 8000 tons, and the enterprise pays the old-age insurance in accordance with 60% of the local social average wage. At present, the enterprise pays 502 yuan for each employee every month. After the social security rate is reduced to 16%, the calculation result is 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 420 thousand yuan. By reducing taxes and lowering fees, the company can save 1 million 220 thousand yuan a year. 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.

More than the spinning enterprises, many yarn enterprises generally believe that the tax reduction will reduce the burden on enterprises, raise the level of profitability, facilitate the light load of enterprises, and the whole operation cost of cotton spinning industry chain will also decline, and enhance the competitiveness of enterprises in the international market.

Liu Zibin, chairman of Lu Tai textile Limited by Share Ltd, said: "70% of our products are sold overseas, of which high-end fabric exports account for 20% of the world's similar market. The new tax policy will bring about about 52000000 yuan tax cuts for the whole year.

"When we heard that the value-added tax rate was once again lowered in the two sessions, we were discussing enthusiastically in the WeChat group. The state has reduced taxes and fees, reduced the tax burden on enterprises, reduced the pressure of funds, increased investment confidence, and made enterprises develop in a light load and have more potential for development. We estimate that after April 1st, only one value-added tax is expected to reduce the tax burden by 200 thousand yuan a year. " The real policy of reducing taxes and lowering fees has landed some yarns in Jiangsu area to be confident in winning the tough battle of upgrading traditional industries. Company leaders believe that the spanformation and upgrading of traditional industries, technology investment is a breakthrough point, improve value-added products is the direction, and tax cut fees for the spanformation and upgrading of traditional industries by pressing the "fast forward key."

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, such as effectively reducing operating costs. These funds can be used in the spanformation of new and old capacity, expand production lines, increase production efficiency, enhance product research and development, and effectively enhance the core competitiveness of 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.

Experts believe that since last year, influenced by the Sino US trade, the consumption and export of cotton textile in the lower reaches of China has been sluggish, 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 rushing to the international export market. 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.