Since January, the environmental protection tax and VAT will be reduced by 1% of the news spread, the policy changes in the industry to make waves, then the implementation of the "two taxes", in the end will have what impact on the plastics industry?



       First of all, the environmental protection tax, "Environmental Protection Tax Law" was implemented at the beginning of 2018, the tax law provides that environmental protection tax by quarterly declaration, April environmental protection tax ushered in the first collection period. The most important purpose of the change from "fee" to "tax" is not to generate revenue, but to establish a mechanism whereby "enterprises pay more tax for more emissions and less for less emissions". Through rigid taxation, enterprises with high pollution and high energy consumption are forced to transform and upgrade. In recent years, as the country has paid more attention to environmental protection, enterprises have responded positively to the various requirements of environmental protection in their production. The current implementation of environmental protection tax has had little impact on the better regulated polyolefin industry, so the argument that the imposition of environmental protection tax will significantly increase the cost of enterprises, which will then be passed on to products, is not valid.



       In terms of VAT, from 1 May 2018, the VAT rate was reduced from 17% to 16% for manufacturing and other industries, and from 11% to 10% for transport, construction, basic telecommunication services and other goods such as agricultural products. The VAT rate was reduced by 1%, and for polyolefin products with a tonne price of around 10,000 yuan, the price difference per tonne according to different VAT rates was around 100 yuan. In April, during the pre-VAT reduction period, market actions gradually became apparent, and based on the changes in VAT, the risk of market hoarding was relatively reduced. Procurement of inventory, planned to ship in May, when there will be about 100 yuan / ton of flexible operating space, and with the end of the month approaching, some merchants began to appear in the month invoicing and May invoicing two different prices.

       

       Comprehensive, the environmental protection tax levy on the industry cost impact and market changes are not significant, but VAT reduced by 1% in the tax rate change handover period market has part of the flexible operation situation, April hoarding May release or a certain degree of link source supply tight situation, and trend quotes, based on the current plastic supply and demand contradictions gradually highlighted, VAT reduced by 1%, will have a certain inhibitory effect on plastic prices .