Is the coating industry upgrading or undercurrent behind the consumption tax?

China Coatings Network
News: In order to promote energy conservation and environmental protection, from February 1, the state began to impose a 4%
paint
consumption tax on coating enterprises, it is understood that the paint consumption tax is levied only on paint production, commissioned processing and import links. For 420 g/L of ≤ voC content in the construction state, consumption tax is exempt. It can be seen that VOC coatings have been taxed consumption tax has become a reality, the second half of the paint downstream industry may also levy VOC sewage charges. This in the paint industry, it seems to be a
water-based paint
with oil-based paint long-term battle to mark the end of the water-based paint or usher in faster development.
Policy out, the provinces
a coating enterprises
have responded to the initiative to declare consumption tax, and actively corresponding to the call of the country, "this increase in consumption tax, we have been prepared, although for our enterprises, the tax burden will increase, but also a driving force for our transformation and upgrading, some enterprises have been transformed to produce energy-saving and environmentally friendly paint." "At the same time, the imposition of a consumption tax will accelerate the internal integration of the paint industry, forcing some backward enterprises to launch the market, conducive to industrial layout and environmental improvement.
the paint industry upgrade or undercurrent surge behind the consumption tax?
However, in fact, the vast majority of China's paint enterprises solvent-based coatings still accounted for a considerable share, including Jiabaoli, Shanghai coatings, exhibition, Bards and other large enterprises, although in recent years, enterprises to speed up the adjustment of product structure, transformation and development of water-based paint, but limited by various conditions of immaturity, water-based paint industrial development is still difficult. That is to say, the source of sales revenue of paint enterprises is mainly solvent-based coatings, no solvent-based coatings as an economic source, enterprises will be difficult to develop. In this case, the transformation and upgrading is imperative, but new problems have come, enterprises face more difficulties in transformation and upgrading, capital, technology, talent, is indispensable.
large-scale paint enterprises are facing this transformation of financial and technical difficulties, it is inferred that the paint consumption tax levy will have a great impact on the technical content of paint enterprises, will speed up the shuffle process, small businesses closed down. But in fact, can not be so ideal to analyze, but also according to China's specific national conditions and the current situation of the paint industry to analyze. At present, China's economic system is not perfect, the legal system is not perfect, which also gives many irregular enterprises many opportunities to survive; In addition, China's paint industry concentration is not high, the market is immature, paint standards are not perfect, coupled with regulatory implementation is not in place, but also to irregular enterprises have a certain space for development.
the whole paint industry is too messy, many irregular enterprises will not be afraid of national environmental protection policies, they have their way of survival. Take this paint consumption tax collection, if simply to paint enterprises to levy taxes, which is unfair to formal enterprises. Some tax evasion and tax evasion, but it is possible to reduce costs by another 4% to take advantage of the opportunity to become bigger, from which small profits to accelerate the development of small-scale enterprises and non-standard enterprises. This will condone a large number of paint enterprises, but not conducive to environmental governance. In addition, if formal enterprises pay consumption tax, it will increase costs, which will lose the price advantage, and small enterprises because they can think of ways to avoid the adverse effects of the policy, which will exacerbate the "bad currency expulsion of good money", so that the phenomenon of counterfeit sales more rampant, the survival of formal enterprises more difficult.
Paint consumption tax collection, a large number of paint enterprises are facing double pressure, facing two options, or transformation and upgrading to voc content below the prescribed range, or to pay good tax, which undoubtedly reduces the profits of enterprises, enterprises will not watch their own interests suffer, the product price increase has become a means for enterprises to take self-insurance, and finally consumers pay for it. As a result, companies have announced their own price increases, recently, Chuanhua share insiders revealed that the company plans to start in mid-April, the paint products of the new single price increase of 2%-4%, of which the old customers to raise the price of 2%, new customers to raise the price of 4%. Many small and medium-sized tu enterprises are just waiting for the leading Tu enterprise price increase news in the industry spread the moment, and then followed the price increase. The paint industry quickly rose.
paint industry will be upgraded in the price increase, as paint analyst Roger Carr said, paint consumption tax hit,
paint prices
is going to rise, depending on who rises first, how to rise? Upgrades to products and services after price increases, worthless prices after price increases? Value of the coating enterprises, will be upgraded in the development, in the upgrading of the development, the paint industry will therefore transition to the low VOC era. Non-worthy coating enterprises, will be eliminated by customers.
The impact of the consumption tax also heard the voice of price reduction, but price increases are still the mainstream choice, in order to meet the market demand for environmental protection stressed in environmental protection, coating, design, color, services and other aspects of high added value, to provide products and services upgrades, tu enterprises are for price increases after the pen, for the price increase left a reasonable reason.
After the implementation of the consumption tax, there is no doubt that low VOC, high added value, will become the direction of paint development, in the past Dongguan famous furniture exhibition, the exhibition of 16 coating enterprises all with water-based paint to meet, but also to us to explain something!