Why the consumption tax! Paint enterprises seven asked the two ministries

China Coatings Network
News: 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
on Weibo: In order to promote energy conservation and environmental protection, the State Council approved the collection of consumption tax on coatings, in the production, commissioned processing and import links, the applicable tax rate is 4%. At the same time, it is said that the construction state of volatile organic matter (VOC) content of less than 420 g / liter (including) of coatings exempt from consumption tax. As soon as this message came out, a stone stirred up thousands of questions!
coating industry as a supporting industry of the national economy, and China's real estate, steel, furniture, ships, automobiles, home appliances and other industries are closely related. In the past few years, despite the human cost and transportation logistics costs rise, raw material prices, environmental pressure increase, real estate downturn, formaldehyde crisis, homogeneity competition, thin profits and many other difficulties, China's paint industry is still unremittingly research and development of more environmentally friendly, more energy-saving, more functional new technologies, new products, in line with the national economic development policy and environmental protection policy efforts to carry out enterprise transformation and upgrading.
this time specifically for the paint industry to levy a consumption tax, to the difficult transformation of
coatings enterprises
added another burden. In the future, coating enterprises must bear greater cost pressure, paint enterprises living space further compressed, perhaps thus open a new round of paint industry reshuffle curtain. Paint companies have questions about this.
the promotion of energy conservation and environmental protection is beyond reprocessed, I believe that all the people who feel the shadow of the haze have raised their hands to support. But is it appropriate to adopt this punitive consumption tax in order to promote energy conservation and environmental protection? In this era of promoting positive energy, if the adoption of actively encouraged policies to guide coating enterprises to carry out energy conservation and environmental protection, will better promote the development of environmental protection coatings?
according to the notice, 17 categories of coatings to increase taxes, paint enterprises to apply for exemption, must provide an authoritative inspection agency issued in line with the exemption standards of the inspection report. As we all know, the development of new products and new technologies, especially environmental protection coatings, need a lot of human and material resources and financial input. According to the notification requirements, environmental protection paint production enterprises must increase additional input, such as related products to pay for foreign inspection, to send someone to apply for exemption, to always be ready for sampling review. Isn't the burden on environmental paint companies heavier?
, according to the National Bureau of Statistics, the total production of the paint industry in 2014 was 16.48 million tons. Assuming that environmentally friendly coatings account for 40 per cent and are not taxed, there are about 10 million tons of paint left to be taxed. If this part of the coating contains 60% solvent, it can be understood that the coating is taxed against this 6 million tons of solvent. It is well known that a wide variety of solvents are used in coatings, including: aromatic hydrocarbons, fatty hydrocarbons, alcohol ketones, ethers, esters, terpenes, halogenated hydrocarbons and other different types of hundreds of varieties.
agency forecast that In 2014, China's toluene consumption alone will be about 5.9 million tons and production will be about 7.5 million tons. In terms of consumption alone, tax increases on coatings are only equivalent to tax increases on the country's toluene, a solvent, and emissions from hundreds of solvents remain unaffected. All walks of life are involved in VOC emissions, paint industry emissions only account for a small part of the total, specifically for paint consumption tax can significantly reduce China's VOC emissions?
from petroleum coal to solvents, to resins, to coatings, these links, not only the paint manufacturing process emissions VOC. Moreover, according to the production process, VOC emissions in coating manufacturing are small in the total emissions in the whole process. However, in the whole "for energy conservation and environmental protection, the collection of consumption tax", we only see the paint industry organizations in active cooperation with the Ministry of Environmental Protection, the Ministry of Finance, the General Administration of Taxation to investigate and study. Global
coatings network
learned that other solvent industry, resin industry, coating industry completely lost voice, did not participate. Is the consumption tax of paint manufacturers in line?
according to the statistics of 1,958 paint manufacturing enterprises, the main business income of paint manufacturing industry in China's provinces and cities in January-August 2014 was 244.681 billion yuan, with a total profit of 15.593 billion yuan and a profit margin of only 6.37 percent. A 4% consumption tax means that nearly two-thirds of the profits of paint companies are levied. In the face of the sudden increase in pressure, paint companies can only through price increases, with the downstream share?
coatings industry is closely related to a wide range of industries and has different applications and requirements. One of the most important functions of coatings is to meet the performance requirements of the coated product. However, environmentally friendly coatings products, both domestic and foreign, do not meet the performance requirements of all applications. Taxing also made it difficult to quickly improve the technology of environmentally friendly coatings or improve the performance of environmentally friendly coatings.
only a week from notification to the start of the tax. High efficiency. However, the tax-exempt VOC testing standards and other rules have not been issued simultaneously. There have been reports that a meeting has been held since the second half of 2013 to discuss taxation, but a year and a half later, taxation is in the process of being implemented, and tax-exempt testing standards have been delayed. Even if released now, paint companies will be all environmentally friendly paint products sampling, sent for inspection, take the report also need time, within a month to complete the difficulty is not small. Can the working group that develops the relevant inspection standards speed up and come up with uniform standards for coating enterprises to consider as soon as possible?
1st of this year, although the problem is many, but paint companies are specifically levied a consumption tax is a fait clith. Paint companies, which are busy with their new year's layout, now have to focus on the issues that come with taxation. China's paint industry, which has leapt to the top of the world's paint production, may have to struggle to move forward with further shrinking profits and higher taxes than its foreign competitors.