The dividends are constantly released Tax reduction and fee reduction bring timely rain to the home

The dividends are constantly released. Tax reduction and fee reduction bring timely rain to the home appliance industry.

by:Ocpuritech     2019-04-21

'Deepening the VAT reform, reducing the current 16% tax rate in industries such as manufacturing to 13%, and ensuring a significant decline in tax burdens in major industries.' The tax reduction news from the government work report immediately caused the relevant industries. Hot discussion. From April 1st, a new round of tax reduction and fee reduction measures was officially launched. This is undoubtedly a timely rain for the home appliance industry, which has a meager profit and is facing a bottleneck in industrial upgrading and transformation in a completely competitive market.

number of securities institutions predict that, depending on the upstream and downstream bargaining power, the impact of the VAT reduction on manufacturing companies' profits will be different. The domestic sales of the home appliance sector is high, and the enterprises with low gross profit margins are the most beneficial. Fan Ziying, a professor at the School of Public Economics and Management at Shanghai University of Finance and Economics, believes that the benefits of the two major industries are more obvious. One is the manufacturing industry close to the end consumers, which benefit from the expansion of consumer demand, increase production capacity and increase profits. Scale; either benefit from an increase in product profitability. Another type of enterprise that benefits greatly is related to its market position. Those enterprises with monopolistic technology and large market share in the industry will benefit more.

Tax reduction and cost reduction drive the transformation and upgrading of enterprises

The VAT rate will be lowered by 3 percentage points, and the manufacturing industry will realize large-scale cost reductions. Tianfeng Securities data shows that in theory, the maximum tax reduction can be 668.4 billion yuan.

'At present, China's real economy is more difficult.' Vice Minister of Finance Cheng Lihua said: 'By continuing to reduce the burden on manufacturing enterprises, the company's expectations and operating efficiency can be improved. After the company receives tax reduction funds, it will have more The resources used for equipment renewal, technological innovation and upgrading are conducive to enhancing the vitality and competitiveness of enterprises, promoting the manufacturing industry from the low-end to the medium-to-high end, accelerating the transformation of new and old kinetic energy, and promoting the high-quality development of China's economy.'

Indeed, for traditional manufacturing, the tax rate reduction is also important for stimulating its transformation and upgrading and inspiring new vitality while reducing taxes and reducing losses. The downward adjustment of the tax rate will reduce the burden on home appliance enterprises and enhance the confidence of enterprises and the ability to resist risks. In the long run, it will help strengthen the development potential of enterprises, and enable enterprises to invest more abundant liquidity into new economic fields such as intelligence and digitalization. Promote the deep integration of next-generation information technology such as the Internet, big data, and artificial intelligence with the manufacturing industry, accelerate the development of intelligent manufacturing, and drive the high-quality development of the entire advanced manufacturing industry.

With the implementation of the new round of tax reduction and fee reduction measures, the tax burden of the home appliance industry has been reduced. This means that in the context of the constant sales price of the market products, the profit remaining in the enterprise has increased, and the enterprise can use As the funds for research and development of new products increase, the company has a certain space for recuperation.

Tax reduction brings more room for price reduction

The problem facing the home appliance industry is the saturation of the market. Stepping into the Chinese family, you will find that the proportion of household appliances in the town is extremely high. The market for home appliances is mainly concentrated in newly married families and newer families. As the marriage rate of Chinese people has decreased and the demand for replacement of home appliances has weakened, even though home appliance manufacturers have introduced exciting new products, such as 4K TV, 8K TV, laser TV, smart home appliances, etc., it is difficult to evoke Consumers' desire for consumption is not good, as can be seen from the gradual decline in sales in the domestic color TV market.

For the home appliance industry, the 3% tax dividend is directly reflected in the retail price of some products. Take digital products as an example. The price of the 13-inch MacBook Pro dropped from 10,200 yuan to 9,936 yuan, down 264 yuan. Huawei Mate20 made a price cut of 500 yuan at the end of March. Many third-party merchants Mate20 Pro even directly Dropped a thousand dollars.

In the field of daily necessities, according to an electrician salesperson near Shuncheng, the price of small household appliances such as brand rice cookers and electric fans has dropped from tens of yuan to hundreds of yuan. For example, the rice cooker of 2000 yuan has dropped nearly 200 yuan. .

Of course, whether the VAT tax reduction rate will drive down the price of certain types of commodities, and how much the price will be reduced, is determined by the degree of market competition of such commodities and the influence of relevant corporate brands. However, the VAT tax reduction rate has undoubtedly provided the company with a price reduction space. It can be expected that more enterprises and more commodities will be added to the price reduction.

Industry insiders expect that the current policy is just beginning to be implemented, and the market will need some feedback. It is expected that around half a year, with the expansion of the range of price-adjusted goods, ordinary people will feel the benefits of the policy, and the policy dividend will be released.


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