Since April 2018, news has spread that environmental protection tax and value-added tax will be reduced by 1%. Policy changes have caused waves in the industry. So what impact will the implementation of the "two taxes" have on the plastics industry?
Let’s start with the environmental protection tax. The Environmental Protection Tax Law was implemented in early 2018. The tax law stipulates that the environmental protection tax shall be declared on a quarterly basis. In April, the environmental protection tax will have its first levy period. The most important purpose of the “fee” reform to “tax” is not to obtain fiscal revenue, but to establish a mechanism of “enterprise paying more taxes and paying less,” through rigid taxation to force companies with high pollution and energy consumption. Upgrade. In recent years, as the country attaches great importance to environmental protection, companies have actively responded to various environmental protection requirements in production. The current implementation of environmental protection taxes has little impact on the well-regulated polyolefin industry. Therefore, the collection of environmental protection taxes will greatly increase companies. The argument that the cost is passed on to the product is not valid.
In terms of value-added tax, from May 1, 2018, the value-added tax rate for manufacturing and other industries will be reduced from 17% to 16%, and the value-added tax rate for transportation, construction, basic telecommunications services and other industries and agricultural products will be reduced from 11. % Dropped to 10%. The value-added tax is reduced by 1%. For products with a price of about 10,000 yuan per ton of polyolefin products, the difference in value-added tax per ton is about 100 yuan. In April, in the early stage of the value-added tax reduction, market actions gradually appeared, based on the value added. Due to the changes in tax, the risk of domestic products in the market is relatively reduced. Based on the expected domestic inspections and repairs in May, the output will decrease, and the bottom of the market will be more supportive. There will be a flexible operating space of around 100 yuan/ton, and as the end of the month approaches, some merchants’ quotations will begin to show two different prices for the current month’s invoicing and the May invoicing.
In summary, the environmental protection tax has little impact on industry costs and market changes, but value-added publications are reduced by 1%. During the tax rate change period, there are some flexible operations in the market. The release of domestic products in April and May may be to a certain extent The supply chain should be tight, and in the overrun market, based on the current contradiction between plastic supply and demand, the value-added tax is reduced by 1%, which will have a certain inhibitory effect on plastic prices.
