How will the consumption tax on paint be levied?

China Coatings Network
: On January 26, 2015, the Ministry of Finance and the State Administration of Taxation jointly issued the "Notice on the Collection of Consumption Tax on
Coatings
(hereinafter referred to as "Notice"), which caused widespread concern in the industry. The Notice requires a consumption tax on coatings as of February 1, 2015, and an applicable tax rate of 4% for production, commissioned processing and import. In particular, the Notice states that coatings containing volatile organic compounds (VOCs) below 420 g/L (including) are exempt from consumption tax under construction conditions.
In order to help the vast number of
coating enterprises
to better understand the "notice" content, "paint industry" WeChat to the Ministry of Finance, the IRS related personnel and the National Paint Quality Supervision and Inspection Center Su Chunhai director of consultation, for the "notice" content for a detailed interpretation.
all enterprises, administrative units, institutions, military units, social organizations and other units involved in paint production, commissioned processing (paint production behavior) and import links are subject to the collection of paint consumption tax.
by the Inland Revenue Department from February 1, 2015, paint-related units in the february tax declaration began to declare.
the volatile organic compound (VOC) content of the coating under construction status is determined, and if the VOC content of the coating product is lower than 420g/L (including) at the time of construction, the coating consumption tax can be waived. Units with tax exemption conditions must produce authoritative testing certificates when declaring. The Ministry of Finance and the relevant personnel of the TaxAtion Bureau suggest that the relevant enterprises should select a state-level testing institution for product VOC content testing, testing standards, testing institutions list or qualification requirements can be seen in the forthcoming implementation rules.
regulations are being worked out and approved and will be published in the near future.
the "National Paint Quality Supervision and Inspection Center" interpretationThe Clean Air Act of 1990 (CAA) and its amendments set a limit of 420g/L (after water deduction) for VOCs (diluted) of coatings.
"Notice" provides that "the volatile organic matter (VOC) content of less than 420 g / liter (including) of paint is exempt from consumption tax", clearly stated that "VOC in the construction state." Therefore, enterprises through the increase of solid parts of raw paint, increase the amount of diluents to avoid consumption tax, there are certain risks.
(1)GB/T23984-2009 "Color paint and varnish low VOC
latex paint
in the determination of volatile organic compounds (voC in the tank) content" equivalent to the standard ISO17895:2005, the method is applicable to VOC content between 0.01% and 0.1% (mass fraction) samples.
(2) GB/T23985-2009 "Measure-difference method of color paint and varnish volatile organic compound (VOC) content" is equivalent to ISO11890-1:2007, which is suitable for samples with VOC content greater than 15% (mass fraction).
(3) GB/T23986-2009 Measurement-gas chromatography of the content of volatile organic compounds (VOCs) in color and varnishes is equivalent to the use of ISO11890-2:2006, which is suitable for samples with VOC content between 0.1% and 15% (mass fraction).
The existing VOC testing methods are applicable to most coating varieties, but for some coating varieties containing active thinners or active ingredients, such as solvent-free coatings, photo-curing coatings, etc., there is no corresponding VOC testing methods of national standards or industry standards, the National Technical Committee for Coatings and Pigment Standardization is actively declaring the corresponding national standards. In the process of testing their VOC content, such as using the existing solid sub-test method (GB/T1725-2007), these active thinners or active ingredients will be partially volatile, resulting in low solid score results of the coating, resulting in higher VOC test results than the actual content. The National Coating Quality Supervision and Inspection Center has established a corresponding VOC testing method to accurately measure the VOC content of paint varieties containing active thinners or active ingredients.
currently involves 11 mandatory standards for VOC limits in coatings (9 have been issued and 2 are in development), and 4 recommended product standards relate to VOC limits. See table below: Mandatory standards for VOC limits in
coatings Mandatory standards for VOC limits in coatings Mandatory standards for VOC limits in coatings
What are the hazards to the environment and human health of VOCs?
VOC and nitrogen oxides in the air produce photochemical oxidants (ozone, peroxyacetyl nitrates, aldehydes, etc.) under the effect of sunlight. The increase of photochemical oxidant concentration will have a negative impact on human health and the environment on which human beings depend, and the presence of VOC will also increase the concentration of plankth particles in the atmosphere and increase the volume and aggravate the occurrence of haze.
coatings are generally composed
film-
, pigments, fillers, additives, dispersing media. After the coating is cured into a film, the solvents, thinners and other volatiles in the coating are evaporated, and the remaining parts are non-volatile film-forming substances. As a result, the vast majority of VOCs in coatings come from volatile substances, i.e. solvents and thinners, and a small portion from non-reactive residual monosomes, volatile additives and payment products for curing reactions in film-forming substances.