Today China's VAT For The Real Economy Such As Manufacturing Industries Is Reduced From 16% To 13%
2019-04-01 06:35:04.0

<p><span style="font-size: 16px;"><br/></span></p><p style="text-align: center;"><span style="font-size: 16px;"><img src="//www.chinamining.com/image.php/shop/data/upload/media/plantform/1b85581d0acec82bd51f952dec7078f0/image/20190401/1554113396487704.jpg" title="1554113396487704.jpg" alt="587X386.jpg"/></span></p><p><span style="font-size: 16px;"><br/></span></p><p><span style="font-size: 16px;">China Premier Li Keqiang In this year&#39;s &quot;Government Work Report&quot; proposed to reduce the Value Added Tax (VAT) for China&#39;s real economy such as manufacturing industries &nbsp;from 16% to 13% .</span></p><p><span style="font-size: 16px;">&nbsp;</span></p><p><span style="font-size: 16px;">Recently, some Chinese coal companies said they have received notification from the State Administration of Taxation that the Value Added Tax rate for the coal industry will be reduced from 16% to 13%, and will be adjusted from April 1st, but the official documents have not yet been received.</span></p><p><span style="font-size: 16px;">&nbsp;</span></p><p><span style="font-size: 16px;">The value-added tax for transportation, construction, real estate and other industries will be adjusted from 10% to 9%, the original VAT rate of 6% will remain unchanged. &nbsp;Coal, steel, non-ferrous metals and other industries can benefit from the overall reduction of the tax burden on the real economy.</span></p><p><span style="font-size: 16px;">&nbsp;</span></p><p><span style="font-size: 16px;">The news was also confirmed by the CHINA NATIONAL COAL ASSOCIATION (CNCA) and a number of Chinese securities companies.</span></p><p><span style="font-size: 16px;">&nbsp;</span></p><p><span style="font-size: 16px;">Since China raised the value-added tax rate for coal related products from 13% to 17% in 2009, the actual tax burden of the value-added tax in the coal industry has been much higher than the national average. After the VAT rate fell to 16% on May 1 last year, the drop of 3 percentage points this time is a major positive for the coal industry.</span></p><p><span style="font-size: 16px;">&nbsp;</span></p><p><span style="font-size: 16px;">Value-added tax is the “big head” of the tax burden of coal enterprises. According to a survey conducted by the CHINA NATIONAL COAL ASSOCIATION (CNCA) in 2015, the value-added tax accounted for more than 50% of the tax burden of coal enterprises.</span></p><p><span style="font-size: 16px;">&nbsp;</span></p><p><span style="font-size: 16px;">According to a survey conducted by the CHINA NATIONAL COAL ASSOCIATION (CNCA) in 2015, at the time of the tax rate of 17%, the actual tax burden of the value-added tax in the coal industry was around 12%, more than double the national average.</span></p><p><span style="font-size: 16px;">&nbsp;</span></p><p><span style="font-size: 16px;">On March 28 last year, the State Council executive meeting decided to reduce the VAT of manufacturing and other industries from 17% to 16% from May 1, and the coal industry is also among them.</span></p><p><span style="font-size: 16px;">&nbsp;</span></p><p><span style="font-size: 16px;">A large and old state-owned coal enterprise in the Northeast of china has calculated that, after the VAT is reduced, this company&#39;s the taxable business of the 2018 year can be reduced by 400 million yuan.</span></p><p><br/></p>

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