On March 5, 2019, the Prime Minister proposed in this year's work report that the current 16% tax rate for industries such as manufacturing industry should be reduced to 13%; the current 10% tax rate for industries such as transportation and construction industries should be reduced to 9%; Keep the tax rate of 6% for the first time unchanged.
Will the PV module price drop after the VAT rate is lowered?
Let’s take a look at some news reports last year when the value-added tax was reduced from 17% to 16%: oil prices took the lead – on April 29, the National Development and Reform Commission issued a special price adjustment notice, announcing domestic gasoline from 0:00 on May 1 The maximum retail price of diesel was reduced by 75 yuan and 65 yuan per ton, respectively, because the value-added tax rate of refined oil decreased from 17% to 16%.
Mobile phone responded quickly - On the evening of April 30, Apple's online store Apple Store opened maintenance. After maintenance, Apple's full-line product price was reduced by nearly 1%. Take the iPhone as an example. The iPhone 8 with the original price of 8388 yuan has been reduced to 8316 yuan, while Apple The price of the headphone accessory Air Pods also dropped from 1,288 yuan to 1,276 yuan. Although some domestic brand mobile phones have not been adjusted in the form of announcements, the discounts on sales terminals have also increased significantly.
Cars follow up on a full-scale - on May 1, Mercedes-Benz cars first opened the tide of price cuts in the automotive industry. Shandong Zibo Xingji Automobile Sales and Service Co., Ltd. is mainly engaged in Mercedes-Benz cars. Zhou Changzhu, the company's financial manager, told the reporter that after the official guidance price is lowered, the price of the car will be adjusted accordingly, but the final transaction price can be cheaper. .
We first analyze the reasons for a falling price:
1. The value-added tax is “extra-price tax”. For example, the price of our normal gasoline is 6 yuan / liter, which is the tax-included price, the price of tax-free is 5.1724 yuan / liter, and the value-added tax is 0.8275 yuan / liter (according to the current 16 %tax rate). In theory, when the VAT rate is reduced to 13%, the tax-included price should be adjusted to 5.8448 yuan / liter. This price adjustment does not affect its operating income because VAT is an extra-tax.
2. VAT is mainly reflected in the taxation of the transfer link. For example, the gasoline purchased at the gas station is 5 yuan / liter (including tax), the retail price is 6 yuan / liter (including tax), the actual value-added tax paid by the gas station is (6-5) / 1.16 * 0.16 = 0.1379 yuan /Rise. After the VAT rate is lowered, the actual tax burden of each link will be reduced, that is, the tax and fee costs of enterprises in the whole society will be reduced.
If we do not consider the factors that reduce the cost of corporate taxes and fees, only consider the value-added tax as a factor of extra-tax: if the component price is 1.7 yuan / W (including tax), after the tax rate is reduced, the theoretical tax-included price should be 1.656 yuan / W (including tax).
There are many factors that determine the price of a product, and the VAT rate is only a part of it. The most classic sentence is "price is the relationship between supply and demand."