Changes in Policy Trends

According to relevant media reports, the export tax rebate rate for some aluminum profiles will be reduced from the current 13% to 9%, and export tax rebates for stainless steel bars, rods, models, silks, etc. may be cancelled. This is the Ministry of Finance is planning to downgrade some of the goods. Export tax rebate policy. As we all know, the export tax rebate is mainly to balance the tax burden of domestic products by returning domestic tax paid for export goods so that domestic products enter the international market at a cost that does not include tax, and compete with foreign products under the same conditions, thereby enhancing competitiveness. , expand export earnings. In simple terms, it is the government that implements preferential policies to encourage exports.

However, in the first quarter, China experienced a trade deficit and the news of the “export tax rebate” was lowered. Although the country hopes to limit the export of high energy consumption, high pollution, and resource-based products, these enterprises will be promoted through life-and-death competition and integration and restructuring. Industrial upgrading. However, for hardware export companies, in the face of wage increases, raw material prices, while the loss of tax protection benefits this layer of "protection film", the increase in export costs is undoubtedly aggravated.

Over the years, many hardware companies accustomed to such government subsidies have been dependent on export tax rebates for many years. Nowadays, as policy trends change rapidly, hardware companies must cope with various situations if they want to find a place to survive.

Collective price increase Although the export tax rebate faced downward adjustment is still in rumors, but many hardware industry has expressed concern. Some people think that the impact of the export tax rebate reduction is the entire hardware industry, so when it comes to how to deal with the export tax rebate rate reduction, the entire industry needs to work together.

The most effective way is to collectively increase the price of the entire hardware industry, because the rise in export costs is not much different, and new cost pressures can only be passed on to customers.

For enterprises, although this year's development is in good shape and orders are more than before, the wages of workers and raw material prices are rising rapidly, and the cost pressure has not been reduced. If the export tax rebate rate is adjusted at this time, the pressure on companies alone will suffer. It's really big enough.

According to industry insiders' analysis, collective price increases are also unsustainable. If this road fails, leading companies in the industry will not be affected by the reduction in export tax rebates, because they have stronger bargaining power. Therefore, SMEs should choose other routes on the basis of price increases. Domestic sales are one of them.