The Latest News Of The National People's Congress In 2019: VAT Cut By 3% _ Which Companies Will Affect The VAT Rate Adjustment?

Industry concentration is constantly improving, and if you do not advance, you will retreat.


Regional industrial planning is the core content of the local economic development strategy, and is the “road map” for the development of related industries at all levels of government departments. For regional development planning, it is equivalent to the importance of a blueprint to a building. Zhang "blueprint", the region can be planned and measured...


On March 5th, the National Conference of the two countries has kicked off this year. In this year's government work report, Premier Li Keqiang pointed out that this year, a larger tax cut will be implemented to ensure that the tax burden of all industries will not decrease.


The government work report said that the deepening of the VAT reform will reduce the current 16% tax rate in industries such as manufacturing to 13%, and reduce the current 10% tax rate in the transportation, construction and other industries to 9%; The tax rate is unchanged, but by adopting complementary measures such as increasing tax deductions for production and living services, it is ensured that the tax burden of all industries will not decrease.


According to the government work report, the tax reduction for enterprises and individuals was about 1.3 trillion yuan in 2018. In 2019, the burden of corporate taxation and social security contributions was reduced by nearly 2 trillion yuan. This will put a lot of pressure on the finance at all levels, and governments at all levels must live a tight life.


So, which companies will affect the 2019 VAT reduction?


Northeast Securities pointed out that VAT as a turnover tax outside the price, from the perspective of the impact, can focus on: as an extra-tax, the dividends reduced tax rate will be more enjoyed by industries or companies with strong bargaining power; from the perspective of profit elasticity, Companies with low net profit are more resilient.


Analysts say that machinery, chemicals, automobiles, non-ferrous metals, household appliances, building materials, computing equipment, coal mining and other industries will benefit. Some brokerages also said that the government supports the manufacturing sector with heavy assets and high technology content, and high-end equipment manufacturing will be a key direction.


High-end equipment manufacturing industries such as aerospace equipment, advanced rail transit equipment, offshore engineering equipment and high-tech ships, high-end CNC machine tools, robots, semiconductor equipment, power equipment, high-performance medical equipment, and agricultural machinery and equipment will benefit.


From the perspective of A-shares, this VAT decline to CITIC Heavy Industries, Sany Heavy Industry, China CRRC, China Heavy Industry, Yaxing Anchor Chain, Huazhong CNC, Beidouxingtong, Xinsong Robot, Eston, AVIC Aircraft, Hangfa Control companies such as Starlight Agricultural Machinery may have a positive impact.