Hot wire LED manufacturing value-added tax rate will fall from 16% to 17%

On March 28th, Premier Li Keqiang chaired a State Council executive meeting decided to deepen the reform of value-added tax measures to further reduce the tax burden of the main market.

The meeting pointed out that over the past five years through the implementation of replacing business tax with value-added tax(VAT) accumulated tax 2 trillion and 100 billion yuan. In accordance with the deployment of the CPC Central Committee and State Council, to further improve the tax system, support manufacturing, Small and micro businesses and other economic development entities, continued the main burden for the market, the meeting decided that from May 1, 2018 onwards.

One is the manufacturing industry value-added tax rate from 17% to 16%, transportation, construction, basic telecommunications services and other industries and agricultural products and other goods to the VAT rate from 11% to 10%, the estimated annual tax 240 billion yuan.

Two is a unified standard of small-scale VAT taxpayers. The industrial and commercial enterprise of small scale taxpayers with annual sales of 500 thousand yuan and 800 thousand yuan standard is raised to 5 million yuan, and allow registered general taxpayer enterprises registration for small-scale taxpayers in a certain period of time, to allow more enterprises to enjoy the preferential tax levy rate is low.

Three is the enterprise of equipment manufacturing and other advanced manufacturing, research and development of modern service industry and meet the requirements of the power grid enterprises to be a one-time refund in the amount of input tax in a certain period of time not deductible.

The implementation of the three measures, the annual market will reduce the tax burden of more than 400 billion yuan, domestic and foreign enterprises will benefit from the same. (Editor: LED James)

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