test


Member ID:
Password: 
Stay logged in for 30 days
Forget Your Password?
close

login CCFGroup App

Industry News | Time:Apr 20 2017 1:23PM
State Council of China: agricultural product VAT to decrease from 13% to 11% from July, 2017
 
Text size
New tax cuts to spur economic dynamism were approved at the State Council's executive meeting, presided over by Premier Li Keqiang, on Wednesday (April 19th, 2017). Some pilot taxation incentives will be expanded, and the value added tax will be consolidated.

Tax burdens on businesses will be eased by about 350 billion yuan ($50.8 billion), a goal set in this year's Government Work Report in March. The government will further streamline tax structures as part of a flatter and more transparent tax system.

The nationwide value-added-tax reform will have a flatter structure. Starting in July 2017, four VAT brackets will be streamlined into three, with tax rates of 17, 11 and 6 percent on different products. VAT rate for agricultural products and natural gas will decrease from 13% to 11%. For the agricultural product deeply processing enterprises, the tax rate will be unchanged, to avoid higher taxes due to lower input VAT.

If the tax rate for agricultural products decreases from 13% to 11%, what impact will be posed on different enterprises?

1. Cotton ginning factories: taxes reduce obviously, and the tax incentive is favorable for the cotton ginning factories with lower costs;
2. Cotton importers: previously, importers need to pay 13% VAT after imported cotton is cleared into Chinese market, after the tax reduces to 11%, the costs move lower;
3. Downstream enterprises: for spinning mills, they have 13% of VAT on cotton when they purchase cotton, which can be deducted, but after the yarn is sold, they need to pay 17% VAT to the country, and now, if the VAT on cotton will reduce from 13% to 11%, it means that the tax for spinning sector increases. Nevertheless, it is heard that the tax for spinning mills remains unchanged, but details are unrevealed.
Related Articles
CNCRC: 2017 China state cotton auction to extend one month
China sets 2017-2019 cotton target prices at 18600yuan/mt
CNCRC: details on 2016/17 state reserves sales
2017 China state cotton reserves sales to commence from March 6,
China sets 2017 import quotas for cotton
China state cotton auction confirmed to extend one month
China state cotton auction to be extended to September 30,
Selling volumes of state reserved cotton can be added, NDRC
2015/16 state cotton reserves sales to commence from May 3, 2016
China reserved cotton structure and reserves sales sequence
 
Research
Sales&production of Indian, Pakistani and Vietnamese cotton ...
Cotton production and consumption structure analysis in ...
PTMEG: price stops falling, supply&demand pattern alters ...
Influence forecast of CPL capacity expansion in second half ...
Will Chinese domestic cotton yarn emerge with uncompetitive ...
Polyester industrial chain pattern and change
 
 

浙公网安备 33010902000742号