The Problem Of "High Levy And Low Deduction" In Shaanxi Cotton Textile Industry Has Been Solved.

A few days ago, along with the provincial tax bureau and the provincial finance department

The issue of "high and low deductions" has been solved in the cotton textile industry of Heilongjiang Province for a long time since the announcement of the industry's trial announcement of the approved deduction method for the value-added tax of agricultural products.

The so-called "high levy low deduction" refers to the cotton textile enterprises (general taxpayers) in the procurement of cotton when the implementation of the input tax rate is 13%, the yarn product sales tax rate is 17%, which means that even if cotton textile enterprises do not realize value-added, will purchase.

Selling at the original price will also have to bear the tax revenue. The value-added tax paid will produce a "high levy and low deduction" situation.

For a long time, the problem of "high levy and low deduction" has been plaguing cotton textile enterprises in Shaanxi province. Enterprises have undertaken more than 4 percentage points of tax, increasing the economic burden of enterprises and reducing the competitiveness of enterprises in the international market.

In February 1st this year, after Anhui province took the lead in solving the problem of "high levy and low deduction" in the cotton textile industry, the Shaanxi Textile Industry Association in May, on behalf of the cotton textile enterprises of the whole province, formally put forward a proposal to the provincial taxation bureau and the finance department to try out the approved deduction method for the value-added tax of agricultural products in the cotton textile industry of Shaanxi Province, reflecting the practical difficulties faced by the cotton textile enterprises in this province.

The proposal of the Shaanxi textile industry association was fully understood and strongly supported by the relevant heads of the State Administration of Taxation and the finance department. The State Administration of Taxation quickly launched the work of formulating the approved deduction method for the value-added tax of agricultural products in the cotton textile industry.

According to the announcement, the notice of the provincial tax bureau and the provincial finance department on the approved method for the deduction of input tax on agricultural products value-added tax has pointed out that according to the Circular of the Ministry of Finance and the State Administration of Taxation on expanding the pilot scale of the approved tax deduction for the value-added tax of agricultural products, Shaanxi decided to implement the approved deduction method for the value-added tax of agricultural products in cotton.

Taxpayer

The production and sale of combed pure cotton yarn and combed pure cotton yarn is a unified deduction standard in the whole province: combed pure cotton yarn (per ton) is calculated according to the amount of 1.4724 tons of lint per unit consumption; combed pure cotton yarn (per ton) is calculated according to the 1.1825 tons of lint consumption.

The production and sale of combed pure cotton yarn and combed pure cotton yarn by seed cotton are subject to deduction by taxpayers themselves.

Taxpayers producing cotton fabric as raw material should accurately calculate the quantity of self produced intermediate products (combed pure cotton yarn, combed blended yarn, combed blended yarn, combed pure cotton yarn) consumed by the final product (fabric) in the month, and calculate the value-added tax input tax allowed in the current period according to the quantity of self produced intermediate products consumed.