State Administration of Taxation to Extend Paint Consumption Tax Range

“China Paint sees Guangdong and Guangdong Coatings look at Shunde.” On the morning of April 9, a director general of the State Administration of Taxation accompanied by Huang Haikai, head of the Guangdong Provincial Coatings Industry Association, and Secretary-General Lü Shuili, who is the head of the Guangdong Province’s national taxation authorities, Zhongtu Chemicals, who came to Shunde District of Guangdong Province, conducted research on the excise tax collection. Coatings analyst Roger Carl told China Coatings News that the investigation by the State Administration of Taxation should be related to the implementation of the rules for the implementation of paint consumption tax.

In the afternoon, Guang Tu Association President Huang Kai and Secretary General Lv Shuilie came to the China Coating News Exchange to share the progress of the State Administration of Taxation on investigating consumption tax, and analyzed the current industry trend. The reason why the IRS named Natice Chemicals to carry out investigations has surprised many in the industry. Huang Duchang told China Coatings News: “Zhongtu Chemical is the second company invested by Japan’s CMP Group in China. It specializes in the production of various kinds of coatings for ships and containers. Since the official implementation of the consumption tax on February 1, it actively paid taxes, only 2 In the month, it paid 240,000 yuan in consumption tax.” NTU is one of the earliest enterprises to implement the consumption tax, and it is not surprising that the IRS requires that the company conduct research on CTU. In the investigation led by the State Administration of Taxation, the chairman of the State Administration of Taxation said that the reason why the consumption tax caused large fluctuations in the industry and there are many opposing voices. There are no implementation rules for paint consumption tax, and the range of exemption is ambiguous and has a lot to do. These issues need to be further improved in the implementation details.

If the scope of taxation is further clarified, such as whether consumption tax is levied on curing agents and thinners for individual sales; whether export-as-usually-painted coatings can be exempted; whether or not a simple processing and re-sale of the purchased paint is to be imposed. In addition, the taxable main agent is purchased from the outside, and the company is accompanied by a curing agent, thinner, etc. if it is to be taxed. The focus of the seminar was mainly on the scope of exemption. The IRS considers the scope of exemption to be too large, and finds that certain companies are falsified to avoid levying consumption tax. At the same time, the State Administration of Taxation intends to extend the scope of the levy to the upstream and downstream, and intends to levy a consumption tax on coatings downstream enterprises and upstream curing agents, thinners, resins, etc., and earnestly listened to views from Guang Tu Xie and Zhong Tu Chemicals.

Coatings analyst Roggekar told China Coatings News: “The scope of the expansion of the scope of the excise tax on paint consumption has been set. The survey conducted by the State Administration of Taxation to Zhongtu Chemical Industry Co., Ltd. is just to determine which of the upstream and downstream enterprises will be included in the excise tax on paint. range."