Experts predict that the cancellation of national

2022-09-19
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Experts predict that the cancellation of super national treatment will have little impact on vehicle prices

China will begin to levy urban maintenance and construction tax and education surcharge on foreign-invested enterprises, foreign enterprises and foreign individuals in China next month. This means that all domestic and foreign-funded enterprises in China have unified all tax systems, and the era of foreign capital enjoying "super national treatment" has officially ended. The equal treatment market environment will allow domestic and foreign-funded enterprises to compete fairly on the same platform

■ the dual tax system is not in line with the law of economic development

the latest data shows that at present, there are 690000 foreign-funded enterprises in China, and the actual utilization of foreign capital exceeds US $1trillion. China has become the developing country with the largest utilization of foreign capital in the world. In the automotive industry, almost all mainstream multinational enterprises have entered China and entered the huge Chinese market through joint ventures, imports and other forms. After foreign brands enter China, not only governments at all levels compete to "grab", but also joint ventures can enjoy "super national treatment" in land, taxes and other aspects after reaching the investment intention

Li Hongyi, a famous automotive industry analyst, pointed out that for the automotive industry, under the condition of "market for technology", a large number of multinational enterprises came to China to seek market opportunities, which not only brought capital and technology, but also cultivated the domestic automotive market. With the maturity and perfection of the market mechanism, the implementation of the dual tax system of domestic and foreign capital obviously does not meet the current needs of economic development

at the same time, from the perspective of the current macro-economy, the upcoming "12th Five Year" economic plan clearly points out that the adjustment direction of the future economic structure will form a new situation in which consumption, investment and export will coordinate to drive the economy. Expanding domestic demand has become a new "keyword" in the next five years, and cultivating and encouraging independent brands has become an important means to achieve this goal

■ the price of a single product will not be affected

according to the statistics of the tax department, the urban maintenance and construction tax and education surcharge to be levied this time are based on the actual amount of value-added tax, consumption tax and business tax. According to this calculation, the tax burden of foreign-funded automobile enterprises may increase by 4%, 8% or 10%. What is the impact on foreign-funded enterprises

an unnamed staff member of GAC Toyota's planning and marketing department said in an interview that for multinational enterprises, relying on the model of global procurement and the introduction of downstream suppliers can achieve precise cost control, and tax concessions are only icing on the cake. If procurement and consumption are taken, I believe it will not affect the competitive relationship between joint venture brands and independent brands. Moreover, the biggest tax burden of the enterprise is income tax, and the two tax concessions reduced this time have little impact on the joint venture

however, some media analysts believe that the additional tax burden may be passed on to consumers. The relevant staff of Chang'an Suzuki market promotion department said that the increase in the tax cost of the joint venture is minimal on average to each product, and has little impact on the sales unit price of vehicles on sale

Li Hongyi also said that the production cost is not directly related to the tax burden, and the product cost mainly depends on the parts, raw materials and labor costs. However, some voices pointed out that a unified tax system is conducive to the competition between independent brands and joint venture brands. Li Hongyi believes that the competition of joint venture brands, but no matter how many experimental machines we produce, our testing team will always maintain a high working state advantage. In terms of products, channels and services, the current price system will remain unchanged. If independent brands want to break through, they still need to focus on products

■ independent brands usher in fair competition opportunities

will the equal treatment of domestic and foreign investment affect foreign investment in China? He Xuwu, School of business administration, Capital University of economics and trade, believes that the implementation of the "one tax system" policy guidance for domestic and foreign investment is more meaningful than practical significance. "The sound market mechanism and the economic and trade agreement within the WTO framework are the prerequisites for attracting foreign investment to China in the future, but the huge market scale is the main driving force." He Xuwu said

in the global context, most countries with mature market economic systems have unified tax and fee systems for domestic and foreign investment. Therefore, for multinational enterprises, the change of tax and fee will not affect their enthusiasm for investment in China. He Xuwu said frankly that under the "super national treatment", both foreign-funded enterprises and local governments are highly motivated, and after reunification, local governments can benefit more from it, while foreign-funded enterprises will not give up the broad Chinese market because of the rise in taxes and fees, and the investment enthusiasm will not decline. The impact on the production cost of enterprises is very small, so the cost of buying cars will not increase, and many OEM manufacturers have won new business

for independent brands, joint venture brands have lost their natural advantages, and are bound to invest more experience and focus on products, which will greatly improve the cost performance of independent brands. Li Hongyi said that the R & D investment of independent brands is less than that of joint venture brands. For example, the unified tax system will provide a fair opportunity to turn on the power switch of the measurement and control box first. In addition, the localization degree of joint venture brands is increasing, and the two will be at the same starting line in terms of R & D investment in new automotive technologies in the future

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