Home Industry Is Affected By Environmental Taxes And Export Tariffs

- Apr 03, 2018-

On January 1, this year, the "Environmental Protection Tax Law" was formally implemented. “According to the tax law, the environmental tax is declared on a quarterly basis, and therefore, the first levy on environmental protection tax will come on April 1. Coupled with recent factors such as US tax increases on Chinese products and environmental protection inspections, home furnishing companies The increase in production and operating costs is an inevitable trend, and there are already concerns that the cost pressure will soon be reflected in the product prices.

Green tax starts on April 1st, and production costs may increase by 15%

An upstream company stated that after the introduction of the environmental tax, the company’s cost will increase by 15% in the short term, and its concern may ultimately be reflected in the terminal prices of sanitary products.

However, there are also industry players who are optimistic. If there is a person in charge of the company, companies can strive to “pollution” through this year’s efforts to not only reduce this cost, but also save 5 million to 6 million yuan annually in governance. cost.

Environmental inspectors “reviewed” and forced enterprises to increase environmental protection investment

During the two sessions, the current Minister of Ecology and Environment Li Ganjie said that in 2018, the goal of environmental inspectors is that all provinces’ local environmental protection inspection mechanisms can be fully established, and all the prefecture-level cities’ environmental protection inspections can be fully covered.

It is foreseeable that the nationwide environmental protection inspectors, whose scope has been continuously increased and the degree of which has been tightened, are just like the spells imposed on manufacturing companies, especially small and medium-sized enterprises, and will have a long-term impact on their production and operation activities.

U.S. Taxes on Chinese Goods, Exports of Enterprises Will Block

On March 22nd, US President Trump signed the president’s memorandum and based on the results of the “301 investigation”, it imposed large-scale tariffs on goods imported from China and restricted Chinese companies’ investment in M&A in the United States. Up to 60 billion U.S. dollars.

In short, 2018 is destined to be a year in which opportunities and challenges coexist. In 2018, the prices of raw materials such as cardboard boxes were increased first, and the new version of the “Water Pollution Prevention and Control Law” was implemented. Recently, the introduction of environmental taxes and the United States’ taxation of Chinese goods were also added.

Under such circumstances, no matter whether the price of products will rise or not, the increase in the production and operating costs of enterprises is an inevitable trend. Faced with a new round of challenges, there are only two roads facing the company: one is to complete the transformation and upgrading as soon as possible, and the other is to keep warm.