What is the impact of the most popular VAT reducti

2022-07-30
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On May 1, the notice on adjusting the value-added rate jointly issued by the Ministry of Finance and the State Administration of commerce became a hot topic besides food and tourism. In the terms of the notice, the most interesting thing is that "taxpayers who engage in value-added tax taxable sales or import goods will be reduced by 1% to 16% and 10% respectively", that is, the value-added tax rate of domestic manufacturing and other industries will be reduced from 17% to 16%, and the value-added tax rate of transportation, construction, basic telecommunications services and agricultural products will be reduced from 11% to 10%. At present, the notice has come into effect and began to affect some consumer electronics, imported cars and other products. On May 1, Mercedes Benz, Lincoln and Jaguar Land Rover lowered the retail guide prices of automotive products in China in response to policy changes

Mercedes Benz, Lincoln, and Jaguar Land Rover can choose the journey of 1000 or output the results if the data elongation exceeds 1000%: the output results of the experimental results can be arbitrarily set: the maximum force value and elongation Jaguar Land Rover have adjusted their prices

on the day of the release of the notice, Mercedes Benz, Lincoln, and Jaguar Land Rover have respectively reduced the recommended retail prices of existing models. For example, Mercedes Benz announced that the prices of all its models would be reduced, among which, smart models would be reduced by yuan, C-class and GLC models would be reduced by yuan, and S-class and Mercedes Maybach models would be reduced by yuan. Jaguar Land Rover and Lincoln also announced that the prices of all their models were lowered to cope with policy changes, and the maximum price adjustment of Jaguar Land Rover reached 20000 yuan. Just today (May 2), the Yusheng brand of Jiangling Automobile also announced that the official guidance price of 50 models, which is the first self owned brand to reduce the price, will be lowered by yuan, because Yusheng S330 and Yusheng S3 customers have a strong demand for upgrading coating materials

from the subjective level, it seems that the 1% reduction in the manufacturing value-added tax of the automobile industry is not large, but from the macro market level, it will have a very far-reaching impact

a formula is followed in China's automobile sales price, and the formula of this formula is sales price = taxable price x (1+ value-added tax rate), that is, the sales price of each model sold in the market is 117% of the taxable price. The vehicle sales price after the tax reduction of 1% is 0.85% lower than the original price. In 2017, China's automobile sales (passenger cars and commercial vehicles) reached 28.88 million, with a sales amount of more than 4trillion yuan, occupying an important position in the manufacturing industry. According to the value-added tax rate of 17%, the tax paid by consumers alone is more than 500billion yuan. Reducing the value-added tax rate is conducive to the sound development of the automotive industry

however, the policy dividend generated by the current tax reduction is difficult to show in a short time. What about in the consumer market

the price fluctuation in the consumer market is small.

"at present, the comprehensive discount for the 2018 Mercedes Benz C 200 sports model in our store is about 40000, and you can also go to the store to discuss the price." the reply was obtained after consulting a Mercedes Benz 4S store in Shanghai. At the same time, the Sales Department added that "at present, the official reduction policy has not reached the level of the store, and the overall impact of the official reduction on us is not great, and the original terminal price still prevails". After consulting several other 4S stores, they basically got the same reply

perhaps because of the holidays, the manufacturer has not fully issued the implementation rules to the dealers. However, in view of the particularity of China's automobile dealer system, the decision of the vehicle terminal price still depends on the market supply and demand relationship and the various preferential policies of the 4S store. Mercedes Benz also pointed out in its announcement that "the final preferential price is subject to the quotation of the local dealers", Therefore, in general, the official reduction policy has little impact on the terminal market price at this stage

the oil price fell

on the eve of the release of the tax reduction policy, the national development and Reform Commission announced that the maximum retail price of domestic gasoline and diesel would be reduced by 75 yuan and 65 yuan per ton respectively from May 1. The oil price adjustment is precisely because the notice reduces the value-added tax rate of some industries and goods, and the value-added tax rate of refined oil is also reduced from 17% to 1% to 16%

it can be seen that compared with the official reduction announced by the above brands, the oil price lowered in response to 7.3 to avoid air entering the hydraulic system can better reflect the impact of the tax reduction policy

summary:

from the survey, the tax reduction has little impact on the terminal prices of various series of models of some auto enterprises, especially in the dealer network, the prices of vehicles are still affected by market supply and demand. For consumers, it is difficult to enjoy the cash benefits brought by the official reduction in the short term, and the major independent brands that occupy the main sales force still have no official reduction notice. However, the oil price can stimulate the automobile consumption market to a certain extent

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