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17
2011
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11
Tax burden plus and minus table: VAT reform varies by industry.
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"Six months ago, the tax bureau told us that your tax collection method might have to be changed." Zhou Shengguo, general manager of Shanghai Xingqi Logistics Co., Ltd., told our reporter: "So the pilot expansion of value-added tax is not sudden for our industry." On October 26, the long-awaited VAT expansion reform pilot finally landed in Shanghai. Sha Hailin, director of the Shanghai Municipal Commission of Commerce, said that Shanghai is fortunate to be able to serve as a pilot for the expansion of the national value-added tax. This is a pilot for structural tax reduction, which is of great significance to the development of Shanghai's service industry. At present, Shanghai is still studying specific plans. According to the published information, the Shanghai VAT
"Six months ago, the tax bureau told us that your tax collection method might have to be changed." Zhou Shengguo, general manager of Shanghai Xingqi Logistics Co., Ltd., told our reporter: "So the pilot expansion of value-added tax is not sudden for our industry."
On October 26, the long-awaited VAT expansion reform pilot finally landed in Shanghai. Sha Hailin, director of the Shanghai Municipal Commission of Commerce, said that Shanghai is fortunate to be able to serve as a pilot for the expansion of the national value-added tax. This is a pilot for structural tax reduction, which is of great significance to the development of Shanghai's service industry. At present, Shanghai is still studying specific plans.
According to the published information, there are two main contents of Shanghai's value-added tax reform: first, on the basis of the current standard VAT rate of 17% and the low VAT rate of 13%, two new low tax rates of 11% and 6% will be added; second, the business tax income originally belonging to the pilot areas during the pilot period will still belong to the pilot areas after the VAT is levied.
When promoting the construction of "two centers" in Shanghai, the State Council chose Shanghai's transportation industry to carry out tax reform pilot projects, which was considered by the industry to help reduce the burden on the shipping industry and other industries.
As for the impact of the future reform of value-added tax on the relevant transportation industry, some scholars have made calculations, pointing out that the expansion of value-added tax will increase the output of the transportation industry and other logistics industries in the future. However, if the tax rate is not lower in the future, it will increase the tax burden of the industry and reduce the future output value of other industries.
Transportation and logistics industry: tax reform may not reduce taxes
If it is not given a lower tax rate in the future, it will increase the tax burden of the industry and reduce the future output value of other industries.
Bao Zhangjing, deputy director of the China Shipping (34.12,-0.23,-0.67) Industrial Economic Research Center, believes that the tax burden of the domestic shipping industry has always been relatively heavy. These taxes include 3% business tax, enterprise income tax, travel tax and stamp duty, while foreign tax havens only need to pay registration fees and tonnage tax, which makes most domestic ocean shipping enterprises choose to register overseas or in bonded areas in recent years.
Tang Gongliang, dean of the School of Taxation of the Central University of Finance and Economics, previously said that it is estimated that if the transportation industry and the warehousing industry are included in the scope of value-added tax and the current value-added tax rates of 17 per cent and 13 per cent are applied respectively, the relevant logistics industry is expected to increase its output value by at least 0.57 per cent and 0.67 per cent respectively in the future.
"After the logistics industry is included in the scope of value-added tax collection, the connection of the value-added tax deduction chain has been improved, so that the manufacturing industry and the wholesale and retail industry can deduct the corresponding input tax when purchasing logistics services," said Huang Hua, a professor at the School of Taxation of the Central University of Finance and Economics. "Therefore, regardless of whether the tax burden of the industry itself increases, enterprises are more willing to use transportation and warehousing services to reduce their costs, so as to promote the growth in the output value of the logistics industry."
However, Huang Hua also said that since the current value-added tax rate is higher than the business tax rate applicable to the transportation industry, if the transportation industry does not give a lower tax rate after levying value-added tax in the future, the tax burden of the transportation industry will rise instead.
"If the tax rate is set according to the pilot open plan, our profit margin will definitely increase in the future, because the cost in our area is very high, and the very many costs incurred in the storage and transportation links are not calculated as input costs." Shanghai Xingqi Logistics Co., Ltd. General Manager Zhou Shengguo told reporters.
Earlier, our reporter learned that the value-added tax rate to be applied in the cargo transportation industry in the pilot area may be 11%. This has not been calculated by the Institute of Finance and Taxation, but previously calculated on the assumption of a lower tax rate of 10 per cent, under the above assumption, the transportation industry after the reform of value-added tax corresponding to the original business tax burden level is equivalent to 3.52 per cent, or higher than the current level of 3 per cent of the business tax.
If the tax burden of the transportation industry is increased to 3.52 per cent after the reform, although the logistics industry itself will increase its output value, the output value of other industries will also be reduced, which is estimated to be about 0.19 per cent.
"The increase in the tax burden of the logistics industry will be passed on to the industries that use these services, mainly agriculture, extractive industries, energy industries, etc.," Huang Hua said. "Most of these industries have their own tax exemption, low tax or simple collection methods. Therefore, the output value will be reduced in the future."
Liu Shangxi, deputy director of the Institute of Fiscal Science of the Ministry of Finance, also believes that tax cuts should be one of the goals of this reform, so low tax rates should be studied to achieve tax cuts.
Financial information industry: look forward to the abolition of business tax
The financial and information services industry has a long history of calling for the reduction or cancellation of business tax of commercial banks.
In addition to the transportation industry, some modern service industries will also be changed from business tax to value-added tax. Among them, the financial industry, as the mainstay of the economy in Shanghai, is also considered to be one of the first pilot industries.
"The current business tax payment model is not very reasonable for us." Cao Jianhua, executive director of Yuantong (Shanghai) Enterprise Management Co., Ltd., told reporters: "For example, we have an information service project with a total amount of 1 million yuan, but we need to distribute it to manufacturer 200000, software vendor 200000, operator 200000, excluding our own costs, and finally get a profit of only 100000 yuan, but our business tax is about 5% of the 1 million base to pay. This is unreasonable."
At present, the business tax rate of the financial and insurance industry is also 5%, while most foreign countries do not have this tax. In fact, the financial and information services industry has a long history of calling for the reduction or cancellation of business tax of commercial banks.
It is reported that the business of the bank's taxable turnover includes loan business income, price difference business income and intermediate business income, while loan business income is the main content of the banking industry, and the tax is based on the full amount of its operating financial business income, and cannot be deducted. Any related expenses.
A person from the finance department of a commercial bank said that the business tax paid by the banking industry is very considerable, but it is a heavy burden for banks. If it can be converted to levy value-added tax or carry out certain reforms, it will be conducive to the development of banking business. Wu Yonggang, a financial analyst at Guotai Junan, said that if the business tax of commercial banks falls by 2 percentage points, the net profit of the 14 listed banks will increase by an average of 5.26 percentage points.
A study on the tax burden and business tax reform of China's service industry by Peking University found that as early as 2008, the tax burden of modern service industry in 11 provinces (cities and districts) in China exceeded the tax burden of industries above Designated Size. These 11 provinces (cities and districts) are: Beijing, Tianjin, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong, Chongqing and Ningxia.
"With the gradual development and growth of the tertiary industry, it also constitutes an important support for the government's fiscal and taxation. Entering the '12th Five-Year Plan', Shanghai has formed an industrial structure dominated by a service economy." A researcher at the Shanghai Academy of Social Sciences said.
The contribution of the service industry to Shanghai's economy is gradually increasing. During the "Eleventh Five-Year Plan" period, the fiscal revenue realized by Shanghai's service industry accounted for 77.1 percent of local fiscal revenue, an increase of 7 percentage points from the end of the "Tenth Five-Year Plan"; the increase in local fiscal revenue contributed by the service industry reached 82%.
In this case, the repeated taxation of the service industry has become an important bottleneck restricting the development of the service industry in Shanghai. In this regard, Zhou Zhenhua, director of the Shanghai Municipal Government Development Research Center, said that according to the current tax system, the average tax burden of the manufacturing industry is about 3%, but the tax burden of business tax on the service industry is about 5%, which is very unfavorable to manufacturing. The service functions of enterprises are stripped out, which is not conducive to the development of service outsourcing.
However, Huang Hua believes that, like the logistics industry, if it is not given a lower tax rate, it will increase the tax burden of the industry. It is estimated that if the existing VAT rates of 17 per cent and 13 per cent are used, the financial sector's original business tax burden after the VAT is changed to 7.28 per cent and 5.56 per cent, respectively, higher than the current level of 5 per cent.
The above-mentioned experts also pointed out that after the financial industry is included in the scope of value-added tax collection in the future, the tax burden on both buyers and sellers of financial services should be similar to that of other taxable goods and services. Therefore, different tax policies should be formulated for different businesses: for example, core businesses such as loans are tax-free, while ancillary businesses such as consulting services are levied at the standard tax rate.
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