East China’s Jiangsu province has promoted efficiency and development by reducing burden for enterprises so as to give a strong impetus to the vitality of the enterprises. Let’s take a close look.
The workers of Mingshuo Computer (Suzhou) Co., Ltd. were systematically assembling and forming parts before packaging them into storage. Since the beginning of this year, thanks to the selective taxation policy, the company has recorded significant growth in its domestic sales.
“New energy vehicles are subject to an 8% tariff rate when sold domestically. We have given full play to the advantage of selective taxation for domestic sales to directly reduce the tax rate to within 0.4% to 2%. From January to June, we saved over 22 million yuan in customs duties for our customers, increasing order volume by about 20%”, Xie Jun, Customs Manager of Mingshuo Computer (Suzhou) Co., Ltd., said.
Selective tariff collection refers to the way in which enterprises within the special customs supervision area, when selling their produced goods domestically, can choose to declare and levy taxes based on actual finished products or materials converted from finished products in a favorable manner.
“These enterprises, including the Comprehensive Bonded Zone and Export Processing Zone can choose this policy model when selling domestically after production and processing. They can compare the comprehensive tax rates of their own finished products and raw materials and choose a more suitable tax rate for the enterprise”, Pan Yunfei, Chief of the Comprehensive Business Department of Huqiu Office of Suzhou Customs, said.
Suzhou Customs has conducted on-site inspection on the enterprises under its jurisdiction through an "online+offline" approach in a bid to guide enterprises to make good use of selective taxation policies for domestic sales, reduce capital occupation, and cut back on production and operating costs.
In the first half of this year, Suzhou Customs helped key local enterprises save nearly 40 million yuan in costs by resorting to the selective taxation models.
With the continuous recovery of demand in the civil aviation market and the stimulation of energy projects, Wuxi Turbine Blade Co., Ltd. recorded exports of $37 million in the first half of the year, a year-on-year increase of 30%.
The current international situation has led to continuous fluctuations in the prices of imported key raw materials, posing challenges to production and operation. The rapid receipt of export tax refunds has effectively supported cash flow and helped the enterprise stabilize production and strive for more orders.
“The tax department has provided great support and assistance to our company, and the export tax refund can be refunded to our bank account within 2 working days after declaration, which has accelerated our capital flow speed”, Cui Xiaobo, Director of the Finance Department of Wuxi Turbine Blade Co., Ltd, said.
Since the beginning of this year, Wuxi has further optimized and improved its export tax refund work mechanism by innovatively launching personalized services such as policy direct trains, specialist guidance, and remote assistance, helping enterprises maximize their enjoyment of export tax refunds, and providing support for foreign trade enterprises to activate working capital and resources.
Statistics show that from January to July, the tax department in Wuxi handled export tax refunds and exemptions of 27.154 billion yuan for 39062 export enterprises.
