Metals News
Tax reduction and fee reduction "pain" in the Transformation and upgrading of stainless Steel towns
Source:Xinghua Municipal Bureau of Taxation
The content below was translated by Tencent automatically for reference.

SMM News: "the good policy of national tax reduction and fee reduction is really a dose of 'painkillers'." Since the second half of last year, we have responded to the government's call to eliminate backward production capacity, and the turnover of funds has been very difficult. I am really in a hurry on my face and in my heart. " Li Qihe, head of Taizhou Jianqiang stainless Steel products Co., Ltd., lamented a lot. "the transformation and upgrading must increase investment. Tax reduction and fee reduction is just the right time to help us subtract taxes and increase confidence."

Jianqiang Company is a microcosm of the transformation and upgrading of stainless steel enterprises in Dainan Town, Xinghua City, "famous stainless Steel Town in China". Xie Jingui, a tax official at Xinghua, helped calculate a "tax cut account." according to the estimated sales size of the enterprise this year, the new round of tax reduction and fee reduction policy will save the enterprise about 546000 yuan in taxes and fees. The tax money saved can be invested in product research and development, environmental protection technology.

It is understood that Dainan Town gathered more than a thousand stainless steel products enterprises, played an important supporting role in the local economic development, 2018 tax revenue accounted for 63.48% of the town's total tax revenue. However, due to the increasingly prominent environmental problems, the "famous brand" established over the years has now become a "pain point". Since May last year, the town's stainless steel products enterprises have actively responded to the government's call to completely eliminate backward production capacity and speed up transformation and upgrading.

In order to help the stainless steel industry in Dainan Town climb the slope and smoothly go through the painful period of transformation, the Xinghua Municipal Taxation Bureau opened the "through train for tax reduction and fee reduction" for key enterprises, established a tax liaison system, accurately tutored enterprises to make good use of the tax reduction and fee reduction policy, helped enterprises to calculate the "tax reduction account," and "got on the horse and sent a ride" for enterprises on the road of transformation.

Jiangsu Xinda Group Co., Ltd. is a linked enterprise of Xinghua tax Bureau Party Committee Secretary and Director Wan Jun. Its "leading products" turn to vacuum filters, accounting for more than 95% of the domestic market. Dai Riquan, head of the company, said: "since last year, Director Wanjun has visited us twice, bringing tax reduction and fee reduction service teams to the door to help us interpret policies and guide us in reporting. According to the calculation of tax officials, our company is expected to reduce taxes by more than 3 million yuan. " After the new policy of social insurance came out of Taiwan, Xie Jingui, a tax liaison, hastened to the group to explain the rate and key points of the reduction of social insurance premiums, and helped the financial staff to carry out calculations. Xinda Group currently has about 700 employees, and after the proportion of social insurance premium units has been reduced, it is expected that the burden of enterprise contributions will be reduced by 1.16 million yuan this year.

Dai Riquan said: "the 'big gift package' issued by the state for tax reduction and fee reduction will give enterprises more strength on the road of transformation and upgrading, and we will use the money saved by the tax reduction to apply for more patents in areas such as research and development, technological transformation, and so on."

Since the beginning of this year, Xinghua City tax department through the innovation of "six one" publicity, refine the convenience of tax services, continue to deepen tax reduction and fee guidance publicity, more measures have been taken to open the fast channel for the transformation and upgrading of Dainan stainless steel enterprises. Under the dividend release of tax reduction and fee reduction, Jiangsu Shenyuan Group dismantled the original 650rolling production line, invested 228 million yuan to build a new production line, and purchased 26 sets of heat treatment furnaces and environmental protection facilities (sets). The environmental protection target of zero discharge of waste water and discharge of waste gas has been achieved. Xinghua Baofu Metal products Co., Ltd. legal person Mu Weipeng said: "there are tax cuts and fees to help, we transform and upgrade 'pass' rather than 'pain'." Take the east wind of tax reduction and fee reduction, the famous stainless steel town of Dainan is becoming greener and greener.

Stainless steel
production capacity
For queries, please contact Frank LIU at
For more information on how to access our research reports, please email
Related Price

No Data