China Network August 22-The "two new" actions to promote large-scale equipment renewal and trade-in of consumer goods are major decision-making arrangements made by the CPC Central Committee and the State Council with an eye to the overall situation of China’s high-quality development.From March, the State Council issued the Action Plan to Promote Large-scale Equipment Renewal and Trade-in of Consumer Goods, to April, State Taxation Administration of The People’s Republic of China issued the Announcement on Relevant Matters Concerning Reverse Invoicing of Scrap Products from Natural Persons by Resource Recycling Enterprises, and then in July, the National Development and Reform Commission and the Ministry of Finance jointly issued the Measures on Strengthening Support for Large-scale Equipment Renewal and Trade-in of Consumer Goods, supporting the policy measures of "two innovations" to continuously expand and strengthen efforts.
State Taxation Administration of The People’s Republic of China’s latest VAT invoice data shows that, driven by many factors such as state encouragement and local government support, from April to July, the equipment renewal of national enterprises was steadily advanced, the growth rate of equipment renewal of industrial enterprises was increased, and investment in new quality productivity was increased; The effect of the trade-in policy for consumer goods is obvious, and the consumption situation of automobiles, household appliances, home improvement kitchens and bathrooms, and smart products is generally good.
Enterprises increase investment in purchasing machinery and equipment, and the effect of large-scale equipment renewal appears.
VAT invoice data shows that from April to July, the amount of machinery and equipment purchased by enterprises nationwide increased by 6.4% year-on-year. Among them, with the gradual implementation of the action plan for equipment renewal in various fields, the year-on-year growth in July was 8.5%, which was significantly faster than the previous period.
The amount of machinery and equipment purchased by industrial enterprises increased by 5.3% year-on-year, 6.4 percentage points higher than that in March. Among them, the amount of machinery and equipment purchased by manufacturing industry increased by 5.8% year-on-year, 6.8 percentage points higher than that in March.The amount of information transmission software, information technology service industry, scientific research and technology service industry purchased machinery and equipment increased by 17.5% and 20.4% respectively year-on-year, and the growth rate increased by 15.8 and 11 percentage points respectively compared with March, reflecting the increased investment in the field of new quality productivity.
According to the data of VAT invoice, in July, the amount of machinery and equipment purchased by transportation, education, culture, sports and entertainment industries increased by 14.8%, 5.1% and 12.3% respectively year-on-year, and the equipment renewal speed was significantly faster than that in the previous period.
"This large-scale equipment update has created conditions for promoting technological changes and industrial upgrading of enterprises. This year, we have arranged 380 million yuan for the purchase of new intelligent and green high-end equipment. " Li Zhijie, general manager of the strategic planning and investment department of China Yizhong Group Co., Ltd., said that this year, the enterprise changed some intelligent new equipment and solved the old problems such as low processing efficiency and low quality of products. After the intelligent transformation of enterprises, the defective rate of products decreased obviously, which reduced the energy consumption and waste in the production process and increased the overall production capacity by 10%.
"The fiscal and taxation business of equipment renewal is more complicated, involving government subsidies, depreciation treatment, recycling, tax concessions and other aspects, but the policy services of various government departments have done a good job. In particular, the tax authorities pushed the policy package to us in a timely manner, and all the regulations were clearly reminded, which relieved our worries. " The head of China Yizhong Finance Department said.
In the workshop of Chongqing Minfeng Chemical Co., Ltd., located in Tongnan District, Chongqing, the production line for extracting chromium salt from chromite is operating in an orderly manner. "In the first half of this year, we invested 50 million yuan to purchase equipment such as rotary hearth furnace. After putting it into use, it is expected that the utilization rate of chromium will increase from 60% to 90%." Yang Lijuan, the company’s financial controller, said that during the transformation of the production line, tax personnel came to the door for counseling and timely enjoyed preferential tax and fee policies. In July this year, the company enjoyed a deduction of more than 18.6 million yuan for research and development expenses in the first half of this year, which eased the financial pressure. Since the beginning of this year, the company has received orders totaling about 1.1 billion yuan, and some orders are under negotiation. It is estimated that the annual output of chromium salt will reach 110,000 tons.
In the Northeast Express (E-commerce) Logistics Industrial Park in Panshan County, Panjin City, Liaoning Province, the reconstruction and expansion project of Shentong Express Panjin E-commerce Logistics Sorting Center with a total investment of 230 million yuan is in full swing.
"The company seized the policy opportunities of the state to encourage equipment renewal and logistics cost reduction, and made additional investment in the reconstruction and expansion of the sorting center, with an additional area of 53,000 square meters, and iteratively updated the automatic conveying equipment and intelligent sorting equipment." Wang Xu, financial director of Shentong Express Panjin E-commerce Logistics Sorting Center, introduced that the local tax authorities sent a "gift package" of tax policies to provide special solutions for the project construction and help enterprises achieve cost reduction and efficiency improvement.
The sales growth of consumer goods is obviously changing the old for the new, effectively releasing the consumption potential.
With the implementation of a series of policies to promote the trade-in of consumer goods, residents’ willingness to consume has been continuously enhanced and their consumption potential has been gradually released.
According to the unified invoice data of motor vehicle sales, from April to July, the sales of new energy vehicles increased by 34.8% year-on-year, 7.3 percentage points higher than that in March. Among them, the sales of new energy vehicles increased by 38.5% in July, which became an important force to stabilize automobile consumption. According to the unified invoice data of used car sales, after the release of the Detailed Rules for the Implementation of Vehicle Trade-in Subsidies on April 24, the sales of used cars increased significantly. From May to July, the sales of used cars increased by 7.2% year-on-year, and the growth rate was significantly higher than that in the previous period.
"Now domestic new energy vehicles have advantages in terms of price and use cost, especially the two-way guidance of the old-for-new and vehicle purchase tax reduction and exemption policies, which has made many car buyers choose to replace the old fuel vehicles with new energy vehicles." Wan Meibo, financial director of Hunan Changde Jinxuanfeng Xindi Automobile Sales & Service Co., Ltd. said, "Now new energy vehicles have become a’ good heart’ for more families. Sales in June and July this year exceeded 100, up nearly 50% year-on-year."
According to statistics, as of the end of July, a total of 152,500 new energy vehicles in Hunan enjoyed the vehicle purchase tax reduction and exemption policy this year, with a tax exemption of 2.211 billion yuan.
The policy of "real money and silver" has also injected new vitality into consumer markets such as home appliances and furniture. According to the data of VAT invoice, from April to July, the sales revenue of household appliances such as refrigerators and household audio-visual equipment such as televisions increased by 4.4% and 3.5% respectively year-on-year, and the growth rate increased by 4.8 and 10.1 percentage points respectively compared with March. The retail of household appliances is improving and further transmitting to the production end. From April to July, the sales revenue of TV sets, audio equipment, lighting appliances and refrigeration and air-conditioning equipment manufacturing increased by 7.9%, 7.4%, 12.9% and 4.3% respectively, and the growth rate was 12.6, 24.2, 22.7 and 7.4 percentage points higher than that in March. From April to July, the retail sales revenue of furniture and sanitary ware increased by 9.9% and 14.3% respectively, and the growth rate increased by 9.3 and 24.9 percentage points respectively compared with that in March.
At the sales point of general household appliances in Dazhou, Sichuan, the slogan "Trade-in season, government and enterprises should work together" was posted inside and outside the store, and the policy of "a single new household appliance can get a subsidy of 10% of the actual transaction price including tax, up to 1000 yuan" was supported and welcomed by consumers.
"The trade-in subsidy policy has brought tangible benefits to our home appliance business enterprises. Since the implementation of the subsidy policy, the sales of trade-in only reached 5.18 million yuan." Tang Wenchuan, financial manager of General Household Appliances, said, "Compared with previous years, this year’s activities are larger in scale, stronger in concessions and more in capital investment. Not only that, in the first half of this year, we enjoyed the’ six taxes and two fees’ reduction and exemption policy of small and meager profit enterprises of about 133,100 yuan, which made us more confident to carry out activities such as’ Household Appliances Festival’ and give back to our customers. "
According to the data of VAT invoice, from April to July, the sales revenue of wearable smart devices and smart vehicle equipment manufacturing industry increased by 35.2% and 3.4% respectively, continuing a good growth trend. The sales revenue of the service consumer robot manufacturing industry such as sweeping robots increased by 15.1% year-on-year, an increase of 18.6 percentage points compared with March. Not only is the sales of the intelligent manufacturing industry rising, but the traditional furniture and home appliance manufacturing industries are also moving towards high-end and intelligent. From April to July, smart devices purchased by furniture manufacturing, television and audio-visual equipment manufacturing increased by 32.4% and 66.7% respectively.
Shenzhen Guanxu Electronics Co., Ltd. is a high-tech enterprise focusing on smart headphones, smart speakers and other terminal products. "Thanks to the trade-in policy, our smart headphones have been favored by more and more people." Geng Xinian, sales director of Guanxu Electronics, said, "Sales in the first seven months of this year increased by about 19.52% year-on-year. We are full of confidence in the future development of the company."
"Only by continuous innovation can we further expand the market, and preferential tax policies have enhanced our innovation power." Geng Xinian said, "In the first half of this year, the company enjoyed a deduction of 29.64 million yuan for R&D expenses. We use the tax benefits we enjoy for new technology research and development, capacity expansion, etc., to help the company achieve great innovation and development. "
Li Ping, deputy director of State Taxation Administration of The People’s Republic of China Institute of Taxation Science, said that promoting large-scale equipment renewal and trade-in of consumer goods is an important measure to accelerate the construction of a new development pattern and promote high-quality development. According to the data released by the tax authorities, the dividends of the policies and measures introduced by the state to support large-scale equipment renewal and trade-in of consumer goods are gradually being released, the equipment renewal of enterprises is constantly increasing, the trade-in of consumer goods is progressing positively, and the sales of related industries continue to grow, effectively promoting the production and application of advanced equipment, promoting the continuous increase of the proportion of advanced production capacity, and promoting more high-quality durable consumer goods to enter residents’ lives.
Xie Wen, Director of the Goods and Services Tax Department of State Taxation Administration of The People’s Republic of China, said that in the next step, the tax authorities will continue to further implement various tax support policies, including "reverse invoicing" by resource recycling enterprises to sellers of scrapped products from natural persons, in accordance with the requirements of the State Council’s Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in, so as to give impetus, improve efficiency and improve the environment.
Editor: Peng Yao
Editor: Wei Jing