On March 21st, the Ministry of Finance and the State Administration of Taxation jointly issued a circular to adjust the current tariff, tax rate, and related policies of China's current consumption tax from April 1. It is understood that this is an adjustment of the largest scale of consumption tax since the tax reform in 1994, and because it involves taxes on automobile tires, refined oil and other taxes, it has attracted the attention of the petroleum and chemical industries.
It is understood that the adjustments made by the state to expand taxation of petroleum products are due to the consideration of promoting environmental protection and saving resources. The consumption tax on automobile tires was adjusted on the basis of the original tax rate, that is, the tax rate for 10% of dumped tires was lowered to 3%; the radial tires continued to implement the tax exemption policy. In addition, the addition of refined oil tax items has become a major highlight of this excise tax adjustment and has also attracted much attention from the industry. In the current consumption tax, petrol and diesel have two tax items for petroleum products. After adjusting this tax item, the scope of the consumption tax for five types of petroleum products has been increased. The specific tax rates are: naphtha, solvent oil, and lubricant oil, with a tax rate (tax) of 0.20 yuan per litre; aviation kerosene, fuel oil, and diesel oil, with a tax rate (tax) of 0.10 yuan per litre. The technology of radial tires is advanced and belongs to products that the country encourages to develop. The country adjusted its policy in 2001, that is, radial tires did not levy consumption tax, and this time the tax exemption policy continues.
The industry has responded to this large-scale consumption tax adjustment. Gu Hongzhen, president of the China Rubber Industry Association, said that the country continues to implement a tax exemption policy for radial tires, providing a better space for the development of radial tires. For more than a decade, the 10% consumption tax has caused the skewed tire companies to be in extreme operating difficulties. Basically, they have lost one item of production, and they have not even had the ability to maintain simple reproduction, let alone updating the technology. In this case, lowering the tax rate is necessary and timely, and it is of positive significance for companies to turn losses into profits and increase accumulation. The Sinopec related sources said that from an industry perspective, the taxation of naphtha, solvent oil and other most of the industrial raw materials, therefore, the excise tax will increase the production costs, the ethylene, chemical and other downstream industries It will be affected. Another industry analyst, petrochemical companies will be affected, in particular, will significantly increase the cost of petrochemical listed companies.
It is understood that the adjustments made by the state to expand taxation of petroleum products are due to the consideration of promoting environmental protection and saving resources. The consumption tax on automobile tires was adjusted on the basis of the original tax rate, that is, the tax rate for 10% of dumped tires was lowered to 3%; the radial tires continued to implement the tax exemption policy. In addition, the addition of refined oil tax items has become a major highlight of this excise tax adjustment and has also attracted much attention from the industry. In the current consumption tax, petrol and diesel have two tax items for petroleum products. After adjusting this tax item, the scope of the consumption tax for five types of petroleum products has been increased. The specific tax rates are: naphtha, solvent oil, and lubricant oil, with a tax rate (tax) of 0.20 yuan per litre; aviation kerosene, fuel oil, and diesel oil, with a tax rate (tax) of 0.10 yuan per litre. The technology of radial tires is advanced and belongs to products that the country encourages to develop. The country adjusted its policy in 2001, that is, radial tires did not levy consumption tax, and this time the tax exemption policy continues.
The industry has responded to this large-scale consumption tax adjustment. Gu Hongzhen, president of the China Rubber Industry Association, said that the country continues to implement a tax exemption policy for radial tires, providing a better space for the development of radial tires. For more than a decade, the 10% consumption tax has caused the skewed tire companies to be in extreme operating difficulties. Basically, they have lost one item of production, and they have not even had the ability to maintain simple reproduction, let alone updating the technology. In this case, lowering the tax rate is necessary and timely, and it is of positive significance for companies to turn losses into profits and increase accumulation. The Sinopec related sources said that from an industry perspective, the taxation of naphtha, solvent oil and other most of the industrial raw materials, therefore, the excise tax will increase the production costs, the ethylene, chemical and other downstream industries It will be affected. Another industry analyst, petrochemical companies will be affected, in particular, will significantly increase the cost of petrochemical listed companies.
Qiangtong Machinery Co., Ltd. , http://www.china-defupresses.com