Zhang Shiping Talks About Increasing Cotton Input Deduction From 13% To 17%

"This is the 10th time that I have proposed this proposal." Zhang Shiping, a deputy to the National People's Congress and chairman of Shandong Weiqiao Venture Group Co., Ltd., told reporters that the proposal he brought this year still suggested that the country introduce policies as soon as possible to deal with cotton spin The industry implemented a unified tax, and increased the cotton input deduction from 13% to 17%

"I first put forward this proposal at the First Session of the Ninth National People's Congress in 1998, and it has been more than 10 times since then. I think that the policy of" levying high value-added tax and withholding low value-added tax "for cotton textile enterprises is unreasonable and discriminatory." As the head of the world's largest cotton textile enterprise, Zhang Shiping, the richest man in Shandong on the Hurun Global Rich List this year, dresses simply. The reporter found that the mobile phone he was holding was a simple "elderly mobile phone". "Ho ho, this mobile phone costs 200 yuan each. 2000 yuan can buy 10." Seeing the reporter staring at his mobile phone in surprise, Zhang Shiping smiled at the reporter.

However, when talking about the proposal, he was dignified. "In the current VAT deduction for cotton textile enterprises, the input tax rate of cotton procurement is 13%, and the output tax rate of the final product is 17%, which means that even if the cotton textile enterprises do not realize value-added, they will still bear 4% of the tax when they sell the purchased cotton at the original price, and the tax burden of enterprises is very heavy."

　　 Zhang Shiping He said that this problem existed for a long time, mainly because at the end of the 1990s and the beginning of the 21st century, under the early effect of China's cotton market liberalization and accession to the WTO, the cotton textile market was in a good situation, the profit margin of enterprises was relatively high, and the 4% unreasonable taxes and fees generated from high levy and low deduction could still be borne. However, since 2007, cotton textile enterprises have faced national difficulties. Although some large enterprises, such as Weiqiao, have driven the increase of workers' wages with other advantages, some cotton textile enterprises have only maintained a meager profit because of their international competitiveness, and many small and medium-sized enterprises have suffered serious losses.

"Now other agricultural and sideline products, including corn, have solved this problem, but cotton has not yet been solved, which is very unreasonable and discriminatory." Zhang Shiping said that in recent years, the competitiveness of a single textile enterprise in the international arena has been very weak. At present, China still implements quotas on cotton, and the price of each ton of cotton in China is three to five thousand yuan more than that in foreign countries, Moreover, foreign veils and cotton germ cloth have occupied the domestic market, making domestic cotton textile enterprises, especially small and medium-sized enterprises, more difficult to move forward, and the domestic market has gradually lost. In addition, this unreasonable tax policy has a direct impact on the survival of the cotton textile industry, which not only affects the stability of migrant workers' employment, but also restricts the improvement of migrant workers' wage income. The whole industry has a strong voice to solve the problem of high tax deduction.

"It is suggested that the state should introduce policies as soon as possible to implement a unified tax on the cotton textile industry cotton Input deduction will be increased from 13% to 17%, so that the input and output tax rates will be the same, and the same tax will be levied and deducted. ”Zhang Shiping told reporters that after the implementation of the policy, it can give cotton textile enterprises a more relaxed development environment, speed up the technological progress and structural adjustment of the cotton textile industry, improve the competitiveness of the textile industry, solve the employment of more than 20 million migrant workers, and also lay the foundation for improving the income of workers in labor-intensive industries, so that enterprises can be able to significantly increase workers' wages, We will increase farmers' income.