The consumption tax "hit" the painter paint industry in the era of water paint

China Coatings Network
: On January 26, 2015, the Ministry of Finance and the State Administration of Taxation jointly issued the "Notice on the Collection of Consumption Tax on
Coatings
(the "Notice"), which calls for a consumption tax on coatings from February 1, 2015, which has aroused widespread concern in the paint industry.
it is learned that the object of the paint consumption tax is related to the production of paint, commissioned processing and import links of enterprises, administrative units, institutions, military units, social organizations, etc., the applicable tax rate is 4%. In particular, the Notice states that coatings containing volatile organic compounds (VOCs) of less than 420 g/L (including) during construction will be exempt from consumption tax. Obviously, the promulgation of "notice" is the embodiment of the implementation of green taxation, will promote solvent-based coatings, that is,
paints
green industry transformation, new environmental protection water paint will be vigorously promoted.
, the paint consumption tax has been implemented for three months, the national paint sales have a great impact. April was supposed to be the month when annual paint production began to grow rapidly, but according to the latest data from the National Bureau of Statistics, the monthly year-on-year growth rate of total paint production was 11.68 percent in January-February, 3.78 percent in March and -4.95 percent in April, down 4.95 percent year-on-year and negative for the first time in 13 months. In this regard, experts said that the introduction of paint consumption tax will undoubtedly force enterprises to transform, environmental protection water paint will be promoted by the policy to achieve considerable development. The 4% tax rate represents
painting companies
spending millions more a year, and paint prices have to go up in order to make a profit, which is why sales have plummeted.
it is understood that the addition of some solvents in the coating process is the main reason for the increase in VOC emissions of coatings. Water paint is water as a thinner, no organic solvents, so VOC emissions compared to paint is much lower, more easily meet the duty-free standards of paint consumption tax, which is why most enterprises actively transition to do water paint.
, in the domestic water paint, chenyang water paint from Hebei Province is the industry and consumers are more optimistic about the brand, but also the government strongly support the enterprise. A few days ago, hebei Province SASAC issued a document, clearly stated that to vigorously promote water paint, and priority to choose Hebei local products, gave Chenyang water paint a lot of confidence. At the same time, also published an article that optimistic about the Chenyang Group industrial model, the production of water as a thinner water paint products, in the environment to contribute to the same time, but also for the economic development of Hebei Province.