Paint consumption tax hit, rise or not rise?

China Coatings Network
News: On the domestic
scent
market as a whole, international oil prices fell, paint did not fall, paint consumption tax levy, paint did not rise.
, unlike Chinese companies, Sweden's Berg Group, which ranked 19th among the world's top paint suppliers in 2012, publicly reported a 4 per cent rise on April 1.
's three factories in China, Tianjin, Shanghai and Guangzhou, do not have a paint ex-tax.
is this Berger paint in order to take advantage of the paint consumption tax, earn more than Chinese 4% of the net profit, or April Fool's Day as a way back to the price test?
import and paint consumption tax has been implemented in China since February 1, but because the implementation rules have not yet been issued, more than 90% of the country's provinces and cities have not begun to levy. The provinces and municipalities are still preparing for the levy, pending the delicate stage of the detailed announcement.
Beijing-Tianjin-Hebei, which is concerned with how long the capital's sky is blue, has not yet begun to collect, nor has Guangdong, Shanghai and Jiangsu, the three provinces with the largest paint production in China. Shaanxi Province, Hunan Province, Guiyang City, Zhenjiang City, Maanshan City, Shaoxing City, Shangyu District, although the two provinces of the three cities and one district, although the performance of positive, but its market share, representation and voice is limited after all, people speak lightly.
nations
paint enterprises
, especially the net interest rate is not high furniture paint enterprises, although there is no sound, but there have been some enterprises began to quietly raise prices, or quietly brewing price increases, wait and see the changes in the current situation, according to the relevant policies of the state and industry leading enterprises attitude changes, at any time can be introduced price increase notice, the range is basically 4%, to crack the consumption tax brought about by the life and death situation.
as of the date of writing, Berger coatings issued a price increase news, Tianjin, Shanghai, Guangzhou still did not announce the introduction of paint consumption tax news.
, although it has low VOC coating products, but not launched in China, still sell high VOC coatings to the Chinese market, only through price increases, the increase in consumption tax costs transferred downstream. This is obviously contrary to the original intention of our country to formulate the paint consumption tax. The original intention of the paint consumption tax is to eliminate backward production capacity, industry transformation and upgrading, master the core technology.
unlike PPG's introduction of low VOC coatings, the Berg Group, although it has low VOC coatings technology, did not announce the launch, only announced price increases. The reason is that most of China's coating manufacturers, there is no low VOC coatings and
water-based coatings
of
coating equipment
.
coatings analyst Roger Carr said that in the business, Berg Group in China's coatings industry to promote low VOC coatings and water-based
coating equipment
to adapt to their own products, in the short term will increase their own competitive costs, rather than direct price increases, save money. Promote the low VOC paint that kind of labor difficult and unappeccable thing, let the Chinese government and enterprises do it themselves. Maybe that's what Berger thinks.
China's paint lack of core technology, lack of low VOC coatings and water-based coating equipment, although it is an indisputable fact, but to see the Berg Group's reasons for price increases, or a bit of contempt.
has advanced low VOC coating production technology, to Invest in China, the output is the elimination of high VOC coating technology. This is the industry sub-planning, Berg paint so, other foreign paint companies are also common.
they invest in China, enjoy preferential policies such as land and taxes, and crush local enterprises, gaining huge profits and market share, exporting technology that is 10 years and 20 years behind. And their most advanced and core technology, products, parts, are produced in their own country, and then exported to China at 10 times or more windfall profits. It's industry secrets and hidden rules.
, it's a reserve technology for them to deal with market changes, and it's also a protection for their core technology and business interests. Their reason is Chinese is too imitation and cottage, have to guard against. In fact, even if smart Chinese not copy, they will not export the core technology.
10 years ago, China's auto industry was like this, market-for-technology failure, resulting in national auto companies still do not have core technology. More than 10 years later, the same is true of the coatings industry. This is not the case in television, PC, manufacturing. Only air conditioners, refrigerators and a few other industries, Gree and other national enterprises, master the core technology.
, the storage and protection of core technologies is one of the reasons why Berger Coatings ranks 19th largest paint supplier in the world. Chinese enterprises also need to pay attention to and learn.
in the field of coatings, we do not have much core technology, but under the attack of a generation of paint people, the core technology of paint is being overcome by us one after another. Every time a core technology is conquered, the relevant foreign products will be significantly reduced in price.
the core technology, the next step is to protect and reserve, turning the leading technology into a steady stream of profits, and the industry is upgraded.
price increase is to survive, the consumption tax is to upgrade. China's paint industry is watching and playing in the transformation and upgrading.