Since the New Year, China will implement the "three full" across the country as the main content of VAT transformation comprehensively, namely, across the country, covering the whole industry and full VAT deduction. The personage inside course of study estimates, capital intensive industry will obtain the tax breaks in different degrees. The electric power, chemical industry and so on six get tax breaks will exceed ten billion yuan of above.

Why is lower than expected the amount of the burden

The main content of the reform is: to allow enterprises contain VAT deduction new purchase equipment, at the same time, cancel the imported equipment shall be exempted from VAT and VAT rebate policy, purchasing home-made equipment for enterprises with foreign investment to small-scale taxpayers of value-added tax levy rates to 3%, the restoration of minerals VAT rate from 13% to 17%.

Measured by the finance department, the implementation of the reform will reduce the tax burden on enterprises, 123.3 billion next year. Previously, the Treasury has estimated VAT will reduce the corporate tax break a promise of 150 billion yuan. Ubs's China chief economist wang tao said that the enterprises to reduce the amount of the tax burden, than to predict the amount of small, is due to VAT tax and corporate investment is proportional to the. The financial crisis, will lead to enterprise's investment will decline.

People who benefited the most capital intensive industry

It is understood that the VAT have different influence on different industries. More profit will be exist VAT output and new equipment purchase more capital-intensive industries.

The so-called "the industry" to implement VAT deduction, mainly to see whether there is output part of value-added tax, if not this part also cannot calculate the VAT deduction. Part of the manufacturing, agriculture, forestry and fishing industry, mining industry, power industry, wholesale and retail trade, real estate industry, software industry will pay output VAT.

Cicc, according to a report by the VAT will bring more than thirty industry tax relief effect. Electricity, mining, telecommunications, chemical industry, transportation equipment manufacturing and black metal smelting and other six industry will obtain more than ten billion yuan of preferential tax. Among them, the power industry, the industry will get tax breaks to nearly 19.9 billion yuan.

Don't look classification, rubber products, such as printing ten industries benefit from the most obvious. From the tax breaks for the industry in 2007, the proportion of profits, rubber products, printing, wood processing and its products, fabricated metal products, food manufacturing, textile industry, furniture industry, electricity, heat production and supply industry, nonmetal mineral products ten industry next year so as to obtain the preferential tax accounted for more than 10% of the profits last year. This means that the VAT next year will bring the industry more than 10% of the profit increase. In addition, plastic manufacturing, chemical, telecom, general machinery manufacturing, clothing, medicine and agricultural products (6.39, 0.06, 0.95%), and other 14 industries, will get more than profits last year more than 5% of the tax incentives.