On April 4, the Ministry of Finance issued the “Notice on Adjusting the Value-Added Tax Rate”, deciding to implement measures to deepen the value-added tax reform starting from May 1, 2018. It is expected that throughout the year The tax burden on market entities will be reduced by more than 400 billion yuan. This time the value-added tax rate reform can be summed up in four words: tax reduction and burden reduction! This is something that pleases all relevant taxpayers, and textile people are no exception. So what are the specific benefits of this VAT reform to textile people?
The value-added tax rate in the manufacturing industry has been reduced, and the profit margins of textile and garment processing enterprises have increased
One of the measures to deepen the value-added tax reform The important content is to reduce the value-added tax rate. The main industries targeted include manufacturing, which directly involves our textile and garment manufacturing industry. A garment processing factory owner in Shengze believes: “The value-added tax rate has been adjusted from 17% to 16%. Although it is only lowered by one point, it is a good start. The tax rate reform will have a long-term effect on the industry. Taxation will definitely bring benefits to enterprises. Specifically speaking, the reduction of the value-added tax rate will help enterprises increase profit margins and reduce the tax burden in the circulation link, which will definitely bring benefits to enterprises and industries.”
The annual sales volume standard for small-scale taxpayers is raised, and some textile companies enjoy lower tax burdens
The unified value-added tax standard for small-scale taxpayers is reformed Another important point is that the annual sales standard for small-scale taxpayers has been raised from 500,000 yuan for industrial enterprises and 800,000 yuan for commercial enterprises to 5 million yuan. This shows that a large part of textile enterprises will enjoy lower prices. tax burden. Boss Zhang of a weaving manufacturer told the author: “Our factory is not large in scale, and our annual sales basically do not exceed 5 million yuan. This VAT reform has raised the annual sales standards for small-scale taxpayers. Our factory will Paying taxes as a taxpayer reduces our burden.” Indeed, this measure can be said to be good news to some small-scale weaving factories and trading companies.
To stimulate domestic demand and resist the Sino-US trade war, the time for reform is just right
The recent Sino-US trade war has been a hot topic in the textile industry. Many textile people are very concerned about whether this “war” will affect the development of the industry. It coincides with the current VAT Reform, a textile boss expressed his opinion on this: “This time the value-added tax reform is just right in terms of the launch time, because it is at the time of the ‘war’, and everyone is worried about this year’s export market. I am quite worried, and some friends from textile foreign trade companies are even slightly negative. Under the premise that everyone is not optimistic about this year’s export form, the promulgation of value-added tax reform can stimulate domestic demand through tax cuts and ensure domestic demand. Steady investment growth.” Indeed, from a certain perspective, this value-added tax reform has made a contribution to the Sino-US trade war.
In short, the upcoming value-added tax rate reform is a happy event for all textile workers. If the tax reduction can be carried out step by step , it would be better if it dropped a little every year! There is always hope, what if it comes true? !
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