New National Policy for Waterproof Enterprises

The State Administration of Taxation has issued a notice on taxpayers selling self-produced building waterproofing materials and simultaneously providing turnover tax on construction services (Guo Shui Fa [2006] No. 80). How good is it? It is like a cool rain in the hot summer season, nourishing the waterproof material manufacturer in China that is on the hot pan.

In recent years, the internal and external environments of China's construction waterproofing industry have been very harsh. Due to the unconventional construction market, there have been unfair competition among the waterproof material production enterprises. Some companies have adopted a method of tampering with product quality in order to obtain Proper profits; taking a dead-end approach to quality control to escape possible penalties; in competition for market share, actually depreciate others, draw power, and buy key people as the main means of competition... Ways to bizarre, means The weirdness seriously disturbed the market environment.

In view of this strange phenomenon, there are many insightful people in the industry. In summary, there are mainly two reasons:

First, the technical content of products is not high, resulting in industry threshold is too low. Because the overall technical level of China's building waterproofing industry is not high, the production concentration is much lower than that of other industries, resulting in a simple production method of large pots and tar pitches in many places. A tens of thousands or tens of thousands of yuan can be used to build a coil production line. Although such products do not meet the requirements of the standard, they are able to appeal to the construction market.

Second, the policy is lagging behind or not supporting enterprises. The enterprises are overburdened. There are two outstanding problems in this respect. First, the budget quota for waterproof projects is too low and companies are not profitable. If you add the competitive means of small workshop companies, large and medium-sized waterproof companies simply can not compete. As the price of raw materials soars year by year, the company's living space is getting smaller and smaller, and it is not easy to eat, let alone accumulate and develop. Second, most of China's waterproofing enterprises have waterproof construction qualifications, but for a long time there have been no enterprise taxation management measures that are compatible with the use of self-produced materials for waterproof engineering contracting construction, resulting in many construction waterproof material production and construction companies engaged in waterproof construction. Taxes are repeatedly paid on the one hand, that is, on the one hand, VAT must be paid, and on the other hand, business tax must be paid. Duplicate taxes also make businesses miserable.

The chaos in the waterproof industry is not just the above two aspects. I think this is two relatively important reasons. As long as we grasp these two issues, other problems will be solved. Fortunately, relevant government departments and industry organizations have fully recognized the seriousness of the problem and have already begun to resolve it. The State Administration of Taxation will compare the management methods of waterproof companies against metal structures, aluminum alloy doors and windows, and glass curtain walls. This will provide a one-off solution to the problem of repeated taxation for many years for water-repellent enterprises, reducing the burden on water-proof enterprises, which is undoubtedly the case for China's waterproof industry. Development will play a positive role in promoting.
Release Date:2008/7/15 14:11:09

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