The environmental protection tax, China's first green tax aimed at protecting the environment, will be officially launched on April 1. The environmental tax is paid quarterly, with April 1 solstice 15 being the first to be levied.
Who will be taxed? How to sign?
The Environmental protection Tax law defines "enterprises, public institutions and other producers and business operators that directly discharge taxable pollutants into the environment" as taxpayers, and defines air pollutants, water pollutants, solid wastes and noise as taxable pollutants. Air pollutants and water pollutants shall be determined according to the equivalent number of pollution equivalent of the discharge amount; Solid waste shall be determined according to the discharge of solid waste; Noise is determined according to the decibel number that exceeds national regulation standard.
Since last year, provincial and municipal tax systems have been gradually identifying and identifying the taxpayers responsible for environmental taxes. According to the Xinhua News Agency on February 27, tax authorities across the country have agreed to identify more than 260,000 environmental protection tax taxpayers. A research team from the Central University of Finance and Economics predicts that the tax will far exceed the sewage charge and could reach 50 billion yuan a year.
Among all the provinces and cities, Beijing has the highest charging standard in China, with the applicable tax rate of taxable air pollutants and taxable water pollutants being 12 and 14 yuan per pollution equivalent respectively. The environmental protection tax standard of Jiangsu, Tianjin, Hebei, Sichuan and other provinces and cities shall be 3-5 times of the minimum standard (i.e., the applicable tax rate of taxable air pollutants and water pollutants shall be 1.2 yuan and 1.4 yuan per pollution equivalent); Ningxia, Gansu, Jiangxi, Jilin and other regions with relatively strong environmental carrying capacity translate the original sewage charge standard; Some provinces, such as Shanxi, Hubei, Fujian and Yunnan, appropriately raised their standards.
How much money does coating enterprise want to hand in?
How much money should the coating industry pay a year as a big taxpayer of environmental protection tax? Some experts pointed out that, taking the medium-sized manufacturing enterprises with an annual output value of 50 million yuan as the benchmark, they need to pay an annual tax on air pollutants, which is about 60,000 to 120,000 yuan in total. Tax on water pollutants should be paid, with a total amount of about 80,000-150,000 yuan; It is required to pay the tax on sawdust, dust, chemical garbage and other solid wastes, totaling about 150,000 to 300,000 yuan. And need to pay noise tax, accumulative total is about 50-20 thousand yuan per month. So, the annual environmental tax for a medium-sized manufacturer should be between 300,000 and 700,000 yuan.
In Beijing, Shanghai, Tianjin and other places of coating enterprises annual environmental protection tax will be higher. This does not include the cost of fixing green equipment. In the face of the policy situation, polluters will be faced with two choices: they can either pay the pollution tax directly, or they can "correct their mistakes" and complete pollution control or relocate.
Some coating enterprises chose to relocate, the production base from Beijing, Shanghai and other cities with high taxes and strict environmental protection policies, moved to the industrial park with low taxes, undertake the market sales and services of east China and North China and northeast China, Beijing and Shanghai's original base will continue to assume the functions of research and development and sales.
However, in the face of higher environmental taxes, the transformation is inevitable. It is understood that a well-known coating company in China spent 25 million yuan on environmental protection in 2017. Previously, Ye chemical also disclosed in the 2017 annual report, its coating business in 2017 jinshan plant has invested about HK $11 million in capital expenditure, it is estimated that the entire project expenditure needs HK $24 million. Spending HK $24m is still a lot of money for a company whose coatings business had SALES of HK $1.642bn in 2017. Although small coating enterprise does not need so big expenditure in respect of environmental protection establishment transformation, but the input that spends 500,000-1 million yuan every year also is a heavy burden.
Will environmental tax cause coating industry to rise in price?
The collection of environmental protection tax, for the coating industry, increased production costs, the price of coating products will also rise, coating enterprises have become an inevitable trend. As early as the beginning of 2018, the market price of many coating enterprises has risen. According to incomplete statistics, so far, there have been more than 17 coating enterprises in 2018 to its products to implement price increases, and most of them are enterprises with a strong brand appeal.
In addition to the rising prices of raw materials, coating companies are under pressure from rising labor costs, surging logistics costs, trade wars between China and the United States, dumping and anti-dumping. Since this year, the factors that affect coating enterprises to rise in price are more than an environmental tax. The rise in the price of raw materials and the increase in the cost of taxes directly compress the profit space of enterprises.
In this wave of price rises in 2018, most companies raised their prices by 5-10%, and many companies raised their prices by more than 10%, with the maximum increase reaching 25%. Xuanwei industrial heavy anti-corrosion and Marine coatings Business division, Gabelli UV products, clivia part of the UV product range are more than 20%. Overall, this wave of price rises are not small, and from the present, the possibility of a second price rise is very high.
Rise in price, move, transformation is one hand only, understand from deeper level, environmental protection tax affects coating industry far more than these. Environmental protection tax follows the principle that enterprises should pay more taxes on pollution and less taxes on pollution. It also has a rigid binding force on enterprises and can stimulate their enthusiasm for transformation and upgrading.
We see, under the situation of environmental protection tightening, more and more coating enterprises such as Garbo li, Exhibition Chen, Dabao began to invest money, reform production implementation, production of environmental protection coating. On current trends, this is undoubtedly a powerful way to achieve emission reduction and tax reduction. Environmental protection has been the trend of The Times, suitable for environmental protection requirements also become the necessary conditions for paint enterprises to continue to exist.
Many people in the industry said that the impact of the environmental tax on enterprises will be great, but the specific impact depends on the specific situation of local promotion and implementation.
