On March 15, Premier Li Keqiang met with Chinese and foreign reporters and answered questions. He mentioned that the value-added tax will be reduced on April 1, and the social insurance premium rate will be reduced on May 1, and will be fully implemented. So what impact will this series of national policies have on our textile and garment enterprises? To this end, we visited some local textile companies in Shengze.
The value-added tax was reduced by 3%, and many customers requested price reductions
At present, many textile and garment owners have issued relevant notices urgently. In response to this reduction in value-added tax, textile companies have no plans to adjust prices. The main reason is that although the value-added tax rate has been reduced by 3%, the reduction is only the value-added tax and has nothing to do with the price of the product itself. It is unreasonable for customers to demand lower prices, and this measure has little actual impact on textile companies.
Mr. Zhang from Yuanle Simulated Silk Lianbai Supermarket said that the tax reduction will not have a great impact on the company. It may have a greater impact on large companies, but it does not have a big impact on us; Mr. Li of Suzhou Mi Xing Textile said: “Some customers will raise or lower prices because of this, but we basically will not agree, because one goes out and one comes in.” The difference in an order of 100,000 meters is only over 200 yuan. If you reduce the price to the customer, but your supplier does not reduce the price for you at the same time, there will be a huge loss in profits!”
“Reducing the tax by 3% actually means that we have not reduced the cost very much, but end buyers will not consider it that way. They will ask for a price reduction. Price reductions are likely to occur in the future. After all, the competition is fierce at present, and everyone We are desperately trying to grab a share,” said Mr. Chen, a textile boss in Shengze.
Many bosses said that the tax reduction did not bring obvious benefits to the company, but they encountered customers lowering prices. As a result, Boss Bu’s profits dropped significantly. Let’s come to Calculation:
Based on the gross profit margin of 10% and customer A’s monthly purchase of 100,000 yuan:
Input tax: 90,000*16 %=14400
Output tax: 100,000*16%=16000
VAT: 16000-14400=1600
After tax reduction:
Input tax: 90,000*13%=11,700
Output tax: 100,000*13% =13000
VAT amount: 13000-11700=1300
It can be seen that after tax reduction, an order of 100,000 yuan will have a gross profit margin of 10%. Under the interest rate, the tax amount paid is 300 yuan less, which is 100,000 * 3%, and the tax amount is 3,000 yuan! Such a small amount of tax is really understandable for enterprises, so many cloth bosses said they would not accept negotiation.
The social security premium rate will be reduced on May 1, which will help textile companies reduce labor costs
Starting from May 1st, the unit contribution rate for basic pension insurance for urban employees will be reduced to 16% in various regions! Significantly reduce the social security payment burden of enterprises and substantially reduce the social security burden of small and micro enterprises.
Although it is still more than a month away from the official implementation of this policy, textile companies generally express their approval . Manager Huang of Wujiang Pengda Textile Co., Ltd. said: “We are a trading company, so the number of employees is not large, but overall it is definitely good.” Manager Ma of Wujiang Wanyu Silk Co., Ltd. said: “Although this The news has been released, but the policy is still unclear, and the impact on enterprises cannot be seen for the time being. However, if it is actually implemented, the labor costs of enterprises will be reduced.” Most enterprises believe that reducing social insurance premium rates is a good thing, and now enterprises basically All employees must pay social security. The implementation of this policy can save the company’s labor costs.
The reduction in social insurance rates has played an important role in reducing the burden on enterprises, promoting economic growth, and increasing people’s income.
Financing costs are reduced by another 1 percentage point, which is good for corporate financing, but pressure still exists
The real economy, especially the private economy and small and micro enterprises, have always faced the problem of difficult and expensive financing. Since last year, a series of measures have been implemented to curb the rising trend of difficulty and high financing costs. The state has reduced the reserve requirement ratio four times to promote the flow of funds to the private economy and small and micro enterprises.
This year, the financing costs of small and micro enterprises will be reduced by another 1 percentage point based on last year, reducing financing pressure and benefiting the development of the real economy. Ms. Yu from Suzhou Silk Pan Textile Technology Co., Ltd. said: “The current financing environment in the entire market is average. Although the financing cost has been reduced, which is conducive to the financing of small and micro enterprises, financing pressure will still exist.” Wujiang Wanyu Silk Co., Ltd. Manager Ma also said: “Currently, for small and medium-sized enterprises, financing costs are actually quite high. Many of them cannot get loans from banks because of regulations, and then turn to private high-interest loans. However, if the financing pressure can be alleviated, it will be beneficial to the textile industry.” For the industry, it is a good thing. If there is more water in the pond, it will naturally be easier to raise fish.”
The reduction in financing costs has promoted the development of the real economy and promoted the positive interaction between industry and finance. Healthy development, but cost reduction does not meanAlthough there is no pressure, financing pressure still exists for small and micro enterprises.
Generally speaking, the series of policies recently introduced by the country are beneficial to textile enterprises, including tax reductions. Fee reduction is an important measure to deepen supply-side reform and plays an important role in reducing the burden on enterprises, stimulating the vitality of market entities, and promoting economic growth. </p
