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CNC lathe manufacturers discuss the new tax reduction policy

by:QY Precision      2020-02-16
In recent years, the market has strongly reflected the high tax burden on CNC lathe processing industry. In particular, Sino-US trade frictions have increased the burden on CNC parts processing enterprises engaged in export. Originally, the profits of CNC lathe processing enterprises have begun to decline, but material costs and labor costs are rising. In the face of high tariffs in the trade war, China's export products for precision mechanical parts processing are not competitive. CNC precision machining enterprises have solved a large number of social jobs. Only by continuing to introduce tax reduction measures can we better maintain social stability. Premier Li Keqiang of the State Council said in his government work report that China will implement a larger tax reduction in 2019, focusing on reducing the tax burden on manufacturing and small and micro enterprises. The direct reduction of the value-added tax rate by 3 percentage points will have a very obvious impact on the decline of the manufacturing tax burden, and will bring about a series of related tax reductions. It is expected that the tax reduction will reach hundreds of billions. Shenzhen CNC processing experts analyzed that a 16% reduction in the VAT 3% tax file can theoretically reduce the tax by up to 668. 4 billion yuan. The industries benefiting from the greater benefits of VAT reduction mainly include: CNC lathe processing, chemical, automotive, non-ferrous metals, household appliances, building materials, computer equipment, coal mining. Combined with other fee reduction measures, it is estimated that the burden of corporate tax and social security contributions will be reduced by nearly 2 trillion yuan throughout the year. Shenzhen CNC machining manufacturers believe that the first and most direct impact of tax reduction is to reduce the price of CNC parts processing. For example, if the price excluding tax is 100, then according to the previous 16% VAT, the price including tax is 116, and if the VAT is reduced from 16% to 13%, the price including tax after tax reduction is 113, compared with the previous 116, the price was reduced by 2. 6%.
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