Starting from today, the value-added tax rate will be adjusted, and Shandong enterprises will enjoy an additional 18 billion yuan in tax reduction dividends

        Starting from May 1st, China will lower the value-added tax rate, raise the standard for small-scale value-added tax taxpayers, and implement deferred tax refunds for some enterprises. It is expected to reduce the tax burden of enterprises in our province by 18 billion yuan and increase working capital by 7 billion yuan.

　　Since the beginning of this year, China has continued to promote value-added tax reform and drive high-quality economic development. On April 4th, the Ministry of Finance and the State Administration of Taxation issued a notice, stipulating that from May 1st, the value-added tax rate for industries such as manufacturing, transportation, construction, and basic telecommunications services will be reduced by 1 percentage point, and the annual sales standard for small-scale taxpayers of industrial and commercial enterprises will be uniformly raised from 500000 yuan and 800000 yuan to 5 million yuan. The above reform measures are of great significance in promoting the economic development of our province. In response, the responsible comrade of the Tax Administration Department of the Finance Department of Shandong Province stated, "This value-added tax reform will significantly reduce the tax burden of enterprises in our province, promote the transformation and upgrading of enterprises, effectively alleviate the financial pressure of enterprises, and help create a fair tax environment

　　Lowering the value-added tax rate significantly reduces the tax burden on enterprises, which is conducive to improving profit margins and creating conditions for enterprises to expand production scale and increase capital investment. When it comes to this reduction in value-added tax rate, the person in charge of Wanhua Chemical Group Co., Ltd. excitedly stated that if the value-added tax rate is lowered from 17% to 16%, after deducting the impact of insufficient input deduction, according to the enterprise's production capacity in 2017, the annual value-added tax burden will be reduced by 70 million yuan.

　　Shandong is a major manufacturing province, with its industrial added value accounting for 10% of the national total in 2017, holding an important position in the country's manufacturing industry. The main reduction in value-added tax rates for manufacturing and other industries this time is expected to reduce the burden on taxpayers in our province's manufacturing and other industries by 15 billion yuan. After the standard for small-scale taxpayers is raised, more enterprises can become small-scale taxpayers and be taxed at a low tax rate of 3%, which is expected to reduce the burden of enterprises in our province by 3 billion yuan.

　　This year marks the beginning of the transformation of new and old driving forces in our province. The province has identified the top ten industries for the transformation of new and old driving forces, involving high value-added industries such as high-end equipment and high-end chemicals. According to the design of the value-added tax system, enterprises with higher product added value have more significant tax reduction effects. The tax reduction effect of policies can attract more enterprises to expand investment, upgrade technology, strengthen research and development, and promote enterprises to accelerate transformation and upgrading.

　　This value-added tax reform will implement value-added tax carryover and refund for some enterprises in three industries, namely, enterprises that meet the conditions for advanced manufacturing such as equipment manufacturing, modern service industries such as research and development, and power grid enterprises. After the implementation of this policy, it is expected to increase the working capital of enterprises in our province by 7 billion yuan.

　　In addition, this value-added tax reform benefits both domestic and foreign enterprises equally, which is conducive to creating a fair tax environment, attracting foreign capital to invest in China, and consolidating and expanding the achievements of reform and opening up.