Trade warning

At the beginning of the new year, manufacturing tax cuts and fee reductions "fired the first shot". According to expert estimates, the total scale of reducing the cost of electricity in the manufacturing industry and corporate telecommunications tariffs will exceed 100 billion yuan.
On January 3, the executive meeting of the State Council determined measures to promote the steady growth of the manufacturing industry and stabilize the basic plate of economic development. The meeting pointed out that efforts should be made to improve the business environment and continue to implement tax and fee reduction measures focusing on the manufacturing industry. Promote the reduction of manufacturing electricity costs and enterprise telecommunications tariffs, and fully liberalize the participation of industrial enterprises above designated size in electricity market-oriented transactions.
Zhang Yiqun, vice chairman of China's special committee on budget performance, told Securities Daily that continuing to implement the tax reduction and fee reduction policy focusing on manufacturing industry will further reduce the tax burden of enterprises and bring more benefits to manufacturing enterprises. On the other hand, tax reduction and fee reduction also has the function of structural adjustment, which is conducive to guiding enterprises to increase investment in technology research and development, Promote the transformation and development of the manufacturing industry, and then promote the upgrading of the overall industrial structure.
Liu Xiangdong, deputy director of the Economic Research Department of the China International Economic Exchange Center, told the Securities Daily that only by further reducing the burden on manufacturing enterprises can we further promote investment and development in the manufacturing industry and form a virtuous positive cycle. Tax reduction and fee reduction will be important measures to reduce manufacturing costs and help the manufacturing industry steadily improve quality and efficiency.
In 2019, a series of tax and fee reduction policies, such as deepening the reform of value-added tax, have effectively stimulated the confidence and innovation of enterprises.
Finance Minister Liu Kun said that in the first 10 months of 2019, the country achieved a tax and fee reduction of 1968.894 billion yuan. Among them, from April to October, the value-added tax of manufacturing and wholesale industries was reduced by 459.883 billion yuan, with a tax reduction rate of 25.7.
Ding Zhenyu, senior investment consultant of Jufeng Investment Advisor, told the "Securities Daily" reporter that the current value-added tax rate of my country's manufacturing industry has been reduced to 13%, and there is still room for reduction. The important role of the manufacturing industry in the national economy, and the reduction of taxes and fees in the manufacturing industry can play an important role in stabilizing and rebounding the economy.
The 2019 Government Work Report proposes to reform to promote the reduction of enterprise-related fees. Deepen the reform of electricity marketization, clean up the additional charges on electricity prices, reduce the cost of electricity in the manufacturing industry, and reduce the average electricity price of general industry and commerce by another 10%.
Recently, the State Grid released data showing that in 2018, the State Grid exceeded the target of reducing the general industrial and commercial electricity price by 10%, reducing the cost of electricity for customers by 91.5 billion yuan. In 2019, the task of reducing the average electricity price of general industry and commerce by another 10% will be fully completed, reducing the cost burden of users by 64.1 billion yuan. The total reduction in two years amounted to 155.6 billion yuan.
In 2019, the state also determined to reduce mobile network traffic and broadband tariffs for small and medium-sized enterprises by about 180 billion yuan for the whole year.
"Further promoting the manufacturing industry to reduce electricity consumption and telecommunications tariffs is an important aspect for manufacturing enterprises to reduce operating costs," Liu Xiangdong said. If the scale of electricity consumption reduction by industrial and commercial enterprises in the past is 80 billion yuan to 100 billion yuan, and the manufacturing industry occupies about 60% of the electricity consumption scale, it is estimated that the scale of electricity consumption reduction will be about 50 billion yuan to 60 billion yuan. If the telecom tariff is reduced by about 180 billion yuan in 2019, the 1/3 users of manufacturing enterprises, reduce the cost of telecommunications tariffs on a scale of up to 60 billion yuan.
Zhang Yiqun said that the current tax cuts for the manufacturing industry have reached a certain scale, and the next step should be focused on reducing fees, especially in industries with obvious monopoly such as electricity, telecommunications, and transportation, so as to further stimulate the growth potential and vitality of the manufacturing industry. In addition, we should start with the construction of market mechanism and free and fair competition, so that tax reduction and fee reduction can form a stable mechanism. (Securities Daily)