The Development Of The Manufacturing Industry Has Been Highlights Of Two Sessions

- Mar 19, 2019-

On March 5, at the Second Session of the 13th National People's Congress, Premier Li Keqiang reported on the government work in 2019 that he would reform the value-added tax and cut the tax rate of industries such as manufacturing, from the current 16% to 13%. Some analysts pointed out that this VAT reform will cut taxes by 650 billion yuan. When the news came out, the Minister of Industry and Information Technology, Miao Wei, said that he was surprised. He said that the previous discussion was to reduce the manufacturing VAT rate by 1% or 2%. Miao Miao believes that the reduced tax rate of 3% may bring a very good expectation to the development of China's manufacturing industry, and also provide strong support for manufacturing companies to overcome the immediate difficulties.

manufacturing industry

This tax reduction is undoubtedly the gospel of the new year of 2019. Industries that benefit from this tax reduction policy include: machinery and equipment, automobiles, chemicals, and household appliances. These are the key industries for domestic industry 4.0 and intelligent manufacturing development. Many of them are currently in the period of transformation and upgrading. In the process of transformation and upgrading, it is necessary to increase investment in hardware and software. For small and medium-sized enterprises, these inputs are not small. The number has increased the operational pressure of the company.

According to a previous survey conducted by Deloitte in 2013, 90% of SMEs have a low level of smart manufacturing, and only 50% of the funds with an annual income of less than 500 million are from free funds, while the remaining 50% are all From financing, government subsidies and bank loans. For enterprises with annual incomes greater than 5 billion, 67% of the funds belong to their own funds, which shows the financial problems faced by SMEs in the upgrade process.

manufacturing industry

In addition, in addition to the technical research and development and equipment funding problems encountered during the transformation process, many companies are currently experiencing the increase in the cost of employing people and the difficulty of employing people. Therefore, many enterprise factories and foundries have moved to areas with lower cost of employment. . For example, Hon Hai Group moved the iPhone foundry to India. From the perspective of labor cost and land cost, this is a correct choice. According to the data, the average monthly wage of Indian ordinary workers in 2017 is less than 1,000 yuan.

At the same time, in the process of intelligent manufacturing upgrade, there will be many jobs to be replaced by some automated equipment such as industrial robots. Many of these equipment also require workers to operate, and training employees is not a small expense.

After this tax reduction, the financial pressure of the company will not only be much smaller. After the smooth transformation and upgrading of the enterprise, the use of intelligent manufacturing can help the long-term help enterprises to save costs, and at the same time, the procurement cost for downstream enterprises is also a big advantage. Through this tax reduction, the development environment of domestic smart manufacturing enterprises may be improved, and it is also a good sign for the rise of manufacturing industry.