Everyone should know that from May 1, 2018, the value-added tax rate of manufacturing and other industries has been reduced from 17% to 16%; the value-added tax rate of industries such as transportation, construction, basic telecommunications services and agricultural products has been reduced from 11% Down to 10%!
Recently, whether the VAT rate on May 1 was lowered, and whether the unit price of products should also be reduced by one point, has also caused heated discussions in the soft package industry.
VAT changes from 17 to 16. Should the unit price of the purchased product be reduced by 1 point?
17% and 16%, everyone should be clear that this is VAT. VAT has a better understanding: the profit part pays 16% or 17% to the country, not 16% or 17% of your total shipping price. Because when you purchase goods, the upstream manufacturer will give you a value-added invoice for the purchase, which is used to offset the tax.
for example
Based on 10% gross profit margin, customer A will get 100,000 yuan per month
Input tax: 90,000 × 17% = 15300
Output tax: 100,000 × 17% = 17000
VAT amount = 1700
After tax reduction
Input tax: 90,000 × 16% = 14400
Output tax: 100,000 × 16% = 16000
VAT amount = 1600
Tax reduction amount: 1700-1600 = 100 yuan
Note: Only a monthly payment of 100,000 yuan can reduce the tax by 100 yuan
Another example:
If you buy 100 pieces of something, you have to sell it to others for 120 yuan, and that 20 yuan is your profit. After 20 May 18, the 20 pieces were changed to 16% and turned over to the country (previously 17%) Just before May 1, I had to pay 3.4 yuan (20 × 17%), but now I only have to pay 3.2 yuan (20 × 16%).
If you want to reduce the 1% of the 120 yuan to the customer, that is 1.2 yuan, then you lose.
It can be seen from this that most soft-pack companies said that the transaction unit price will not be reduced due to the drop in tax rate from May. Because, in addition to the issue of value-added tax, the recent cost pressures in other areas can be said to increase unabated:
1. Increased investment in environmental protection
Since 2017, environmental protection rectification storms have been launched across the country, and large-scale production shutdowns have occurred across the country. If the soft bag factory and the film factory want to resume production, they must invest a lot of money to replace the equipment and upgrade the process. Many small and medium-sized factories, because they can't afford the high cost, closed their doors directly. Caused tight supply in the market.
2. Reduce peak production and factory production time
Even if there are some factories that are still insisting, they have invested a lot of money to rectify a little bit according to national standards. It was finally qualified and ready for production. As a result, just two days after production, due to the weather or sewage discharge, it was forced to stagger the peak production and closed!
3. Increased cost of technology development process
In the factory with new equipment, the original technology is no longer supported, and the technology needs to be studied again. The investment cost required here is huge.
4. Increase in worker costs
Nowadays, the phenomenon of labor shortage in the industry is relatively common. Young people are reluctant to work, and no one comes to pay less, and the wages of workers rise every year!
In addition, the environmental protection tax has been levied this year, coupled with the increase in the prices of soft package raw materials and transportation costs, the pressure of various expenditures of enterprises is increasing, and the profits are getting thinner. Therefore, it is not easy to say that the price is reduced!
(The data source is from Bojue Business School and China Silk Capital. It is compiled by Huayin Editor)
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