The value-added tax transformation in China has been nearly two years. In the field of wind power, what is the effect of its implementation? In fact, for the tax and fee reform, from wind power equipment manufacturers, wind power developers to the government where the wind farm is located, there are many people who have benefited from it, and there are also those who are enthusiastically frustrated, and the benefits they bring are adjusted. Also deeply affected the layout of China's wind power equipment manufacturing.
To this end, Zhao Lan, deputy secretary-general of the Wulanchab Wind Energy Association of Inner Mongolia, and Chen Tongbiao, an expert on wind power, specifically visited four flag counties, six wind power companies and a manufacturing plant in Wulanchabu, Inner Mongolia.
Local initiative is frustrated
The transformation of value-added tax is an inevitable result of the national tax system reform. "In the long run, it has positive significance for wind power development," said Zhao Wei.
The tax and fee reform that he referred to was in early 2009 when China transformed the production-type VAT into a consumption-type VAT, and its core was to cancel the tax exemption for imported equipment. The regulations stipulate that after the company purchases equipment, whether it is imported or domestic, the input tax can be deducted from the output tax. In short, the amount of equipment purchased by the company can be deducted from its sales.
“It should be said that this VAT transition, the cancellation of import equipment exemption of value-added tax, foreign-invested enterprises purchasing domestic equipment VAT tax rebate and Other preferential policies, is conducive to independent innovation, is conducive to the localization of equipment.†Chen Tongxi told China Industry News Reporter, this reform has been implemented in the wind power industry, which has reduced the taxation of wind power companies. In the long run, it will have a positive role in promoting investment in wind power companies.
“However, the local government, which is the seat of the wind farm, sees no gains and no benefits,†Zhao said. He paid a visit.
Taking a wind power plant with a capacity of 100,000 kilowatts as an example, the annual power generation is calculated at 250 million kwh, and the electricity price is 0.51 yuan/kWh. The annual output value is 127.5 million yuan, and the value-added tax for half reduction is 127.5 million yuan 8.5%. 108.375 million yuan. In wind power projects, the expenditure for purchasing wind turbines and other equipment accounts for approximately 85% of the total investment, that is, 850 million yuan, and the input tax for equipment is 850 million yuan × 17% = 114.45 million yuan, if the annual value-added tax is 108.837 million yuan. Deduction, it takes 13.34 years. In other words, since January 1, 2009, regardless of the size of the wind power project, the local government has no value-added tax gains for at least 13 years.
“Roughly calculated, after the installation of new wind turbine units in Zhangjiakou after 2009, the “Provisional Regulations on Value-added Tax of the People's Republic of China†will be implemented, and local taxes will be few in the first seven years or so, said Zhao Sujun, director of the Energy Division of Zhangjiakou City, Hebei Province. In fact, China's wind energy resources are mainly concentrated in the Three North region. Most of these regions are relatively backward in economy and lack advantageous industries. Developing wind energy resources is an important way for them to develop their economies and expand employment.
“After the VAT transition, due to the allowable deduction of the input tax included in the newly purchased equipment, the tax paid by wind farms will be significantly reduced,†said Gao Hu, deputy director of the Research Institute of Renewable Energy at the Energy Research Institute of the National Development and Reform Commission, and local governments from wind resource development. The significant reduction in the benefits obtained in the project has largely affected the enthusiasm of local wind farm construction, and has led to the repeated construction of wind power equipment and various non-standard charges.
Plants are blooming everywhere
For wind power equipment manufacturers, the impact is more indirect.
“The tax and fee measures did not directly affect the manufacturers, but indirectly led to the sale of wind power equipment,†said Ma Xiaoping, economist of Goldwind Technology Co., Ltd., told this reporter that the value-added tax transformation made wind power investors buy When entering the wind turbine, the input tax amount can be deducted, and at the same time, the depreciation rate of the unit is reduced, the project profit is increased, and the internal rate of return is increased. These favorable factors will promote wind power investors to increase the investment in wind farms. It is undoubtedly wind power equipment. Manufacturing companies bring sales opportunities and create greater market space.
"In recent years, China's wind power industry has been developing rapidly. It has benefited from the government's planning and support, and it is also related to the investment enthusiasm of wind power developers." Ma Xiaoping said.
At the same time, foreign-invested wind power manufacturers mostly have complete production lines, and blades, generators, gear boxes, etc. are all self-manufactured. VAT transformation can stimulate foreign investors to increase investment in fixed assets, which is a good thing for foreign-funded manufacturers. But for equipment manufacturers, this is not all.
“After the VAT transition, wind farm investors are the biggest beneficiaries. The deduction of input tax will substantially reduce the value-added tax while the related taxes and fees are also decreasing. This also means that the relevant taxes and fees collected by the local tax department will also be reduced accordingly. Ma Xiaoping said that in order to promote the development of local manufacturing and increase the tax revenue of the other party, some local governments have formulated some local policies to promote the local manufacturing of complete machine manufacturing enterprises.
This point has been confirmed by Gao Hu. He explained that after the implementation of the value-added tax transformation in 2009, in order to benefit from the development of wind power in some regions, local wind power companies that develop wind farms must import wind turbines or parts manufacturing companies at the same time, or use local products in disguised form. In this regard, the choice of equipment has formed local protectionism. On the other hand, it has objectively exacerbated the situation of wind power equipment manufacturing.
According to Ma Xiaoping, this type of administrative intervention did not take into account the characteristics of the local industry supporting system and human resources. “If you blindly invest in building a factory, it will inevitably cause some waste to the enterprise.â€
It is recommended to enlist wind resources tax
It is understood that in the second half of 2009, various ways of imposing fee collections have also emerged in some areas of China, such as the compensation fees for lands that have been used for alternative purposes, and pre-work fees, which are not uniform and non-standard, making wind power development companies at a loss, and Development has had a negative impact. Its influence should not be overlooked. In the eyes of Gao Hu, this reform can be said to a certain extent "triggered the imbalance in the distribution of benefits among local governments." He explained that for the government where wind turbines and other equipment are produced, the value-added tax transformation has not caused a great loss of profits to them, but the impact on the government where the equipment is purchased, that is, the wind farm, is significant.
“It is recommended that local governments strengthen the supervision of key industries, adopt different management measures for industries of different nature, and focus on tracking the behavior of thickening corporate profits due to the transformation of value-added tax, especially the tax changes caused by the transformation of value-added tax. Comprehensive assessment will fundamentally protect local government revenues from being affected," said Ma Xiaoping.
Gao Hu believes that in order to better develop wind resources, it is necessary to design and adjust appropriate fiscal and taxation preferential policies. Under the new value-added tax system, it will increase the enthusiasm for the development of wind power in the remote and underdeveloped areas in the north of Northern China to promote the health of the wind power industry. Order development.
“Investors, manufacturers, power grids and local governments are the main forces in developing clean energy, practicing energy conservation and emission reduction, and developing a low-carbon economy. They are also mutually beneficial and win-win communities. Four are indispensable. Fully mobilizing their enthusiasm. It is very important to balance and take into account the interests of all parties,†Zhao said.
He told reporters that the relevant parties made a number of suggestions during the visit: First, wind power should be compared with coal and other mineral resources development related policies, open wind resources tax or wind resource compensation fees; secondly, wind resource tax or resource compensation fee collection The proportion of 3% to 4% of the power generation income is appropriate, and it is hoped that all will be left to county-level finance. In addition, in order not to increase the burden on wind power companies, if wind resources taxes or resource fees are imposed, wind power on-grid tariffs should be appropriately adjusted.
To this end, Zhao Lan, deputy secretary-general of the Wulanchab Wind Energy Association of Inner Mongolia, and Chen Tongbiao, an expert on wind power, specifically visited four flag counties, six wind power companies and a manufacturing plant in Wulanchabu, Inner Mongolia.
Local initiative is frustrated
The transformation of value-added tax is an inevitable result of the national tax system reform. "In the long run, it has positive significance for wind power development," said Zhao Wei.
The tax and fee reform that he referred to was in early 2009 when China transformed the production-type VAT into a consumption-type VAT, and its core was to cancel the tax exemption for imported equipment. The regulations stipulate that after the company purchases equipment, whether it is imported or domestic, the input tax can be deducted from the output tax. In short, the amount of equipment purchased by the company can be deducted from its sales.
“It should be said that this VAT transition, the cancellation of import equipment exemption of value-added tax, foreign-invested enterprises purchasing domestic equipment VAT tax rebate and Other preferential policies, is conducive to independent innovation, is conducive to the localization of equipment.†Chen Tongxi told China Industry News Reporter, this reform has been implemented in the wind power industry, which has reduced the taxation of wind power companies. In the long run, it will have a positive role in promoting investment in wind power companies.
“However, the local government, which is the seat of the wind farm, sees no gains and no benefits,†Zhao said. He paid a visit.
Taking a wind power plant with a capacity of 100,000 kilowatts as an example, the annual power generation is calculated at 250 million kwh, and the electricity price is 0.51 yuan/kWh. The annual output value is 127.5 million yuan, and the value-added tax for half reduction is 127.5 million yuan 8.5%. 108.375 million yuan. In wind power projects, the expenditure for purchasing wind turbines and other equipment accounts for approximately 85% of the total investment, that is, 850 million yuan, and the input tax for equipment is 850 million yuan × 17% = 114.45 million yuan, if the annual value-added tax is 108.837 million yuan. Deduction, it takes 13.34 years. In other words, since January 1, 2009, regardless of the size of the wind power project, the local government has no value-added tax gains for at least 13 years.
“Roughly calculated, after the installation of new wind turbine units in Zhangjiakou after 2009, the “Provisional Regulations on Value-added Tax of the People's Republic of China†will be implemented, and local taxes will be few in the first seven years or so, said Zhao Sujun, director of the Energy Division of Zhangjiakou City, Hebei Province. In fact, China's wind energy resources are mainly concentrated in the Three North region. Most of these regions are relatively backward in economy and lack advantageous industries. Developing wind energy resources is an important way for them to develop their economies and expand employment.
“After the VAT transition, due to the allowable deduction of the input tax included in the newly purchased equipment, the tax paid by wind farms will be significantly reduced,†said Gao Hu, deputy director of the Research Institute of Renewable Energy at the Energy Research Institute of the National Development and Reform Commission, and local governments from wind resource development. The significant reduction in the benefits obtained in the project has largely affected the enthusiasm of local wind farm construction, and has led to the repeated construction of wind power equipment and various non-standard charges.
Plants are blooming everywhere
For wind power equipment manufacturers, the impact is more indirect.
“The tax and fee measures did not directly affect the manufacturers, but indirectly led to the sale of wind power equipment,†said Ma Xiaoping, economist of Goldwind Technology Co., Ltd., told this reporter that the value-added tax transformation made wind power investors buy When entering the wind turbine, the input tax amount can be deducted, and at the same time, the depreciation rate of the unit is reduced, the project profit is increased, and the internal rate of return is increased. These favorable factors will promote wind power investors to increase the investment in wind farms. It is undoubtedly wind power equipment. Manufacturing companies bring sales opportunities and create greater market space.
"In recent years, China's wind power industry has been developing rapidly. It has benefited from the government's planning and support, and it is also related to the investment enthusiasm of wind power developers." Ma Xiaoping said.
At the same time, foreign-invested wind power manufacturers mostly have complete production lines, and blades, generators, gear boxes, etc. are all self-manufactured. VAT transformation can stimulate foreign investors to increase investment in fixed assets, which is a good thing for foreign-funded manufacturers. But for equipment manufacturers, this is not all.
“After the VAT transition, wind farm investors are the biggest beneficiaries. The deduction of input tax will substantially reduce the value-added tax while the related taxes and fees are also decreasing. This also means that the relevant taxes and fees collected by the local tax department will also be reduced accordingly. Ma Xiaoping said that in order to promote the development of local manufacturing and increase the tax revenue of the other party, some local governments have formulated some local policies to promote the local manufacturing of complete machine manufacturing enterprises.
This point has been confirmed by Gao Hu. He explained that after the implementation of the value-added tax transformation in 2009, in order to benefit from the development of wind power in some regions, local wind power companies that develop wind farms must import wind turbines or parts manufacturing companies at the same time, or use local products in disguised form. In this regard, the choice of equipment has formed local protectionism. On the other hand, it has objectively exacerbated the situation of wind power equipment manufacturing.
According to Ma Xiaoping, this type of administrative intervention did not take into account the characteristics of the local industry supporting system and human resources. “If you blindly invest in building a factory, it will inevitably cause some waste to the enterprise.â€
It is recommended to enlist wind resources tax
It is understood that in the second half of 2009, various ways of imposing fee collections have also emerged in some areas of China, such as the compensation fees for lands that have been used for alternative purposes, and pre-work fees, which are not uniform and non-standard, making wind power development companies at a loss, and Development has had a negative impact. Its influence should not be overlooked. In the eyes of Gao Hu, this reform can be said to a certain extent "triggered the imbalance in the distribution of benefits among local governments." He explained that for the government where wind turbines and other equipment are produced, the value-added tax transformation has not caused a great loss of profits to them, but the impact on the government where the equipment is purchased, that is, the wind farm, is significant.
“It is recommended that local governments strengthen the supervision of key industries, adopt different management measures for industries of different nature, and focus on tracking the behavior of thickening corporate profits due to the transformation of value-added tax, especially the tax changes caused by the transformation of value-added tax. Comprehensive assessment will fundamentally protect local government revenues from being affected," said Ma Xiaoping.
Gao Hu believes that in order to better develop wind resources, it is necessary to design and adjust appropriate fiscal and taxation preferential policies. Under the new value-added tax system, it will increase the enthusiasm for the development of wind power in the remote and underdeveloped areas in the north of Northern China to promote the health of the wind power industry. Order development.
“Investors, manufacturers, power grids and local governments are the main forces in developing clean energy, practicing energy conservation and emission reduction, and developing a low-carbon economy. They are also mutually beneficial and win-win communities. Four are indispensable. Fully mobilizing their enthusiasm. It is very important to balance and take into account the interests of all parties,†Zhao said.
He told reporters that the relevant parties made a number of suggestions during the visit: First, wind power should be compared with coal and other mineral resources development related policies, open wind resources tax or wind resource compensation fees; secondly, wind resource tax or resource compensation fee collection The proportion of 3% to 4% of the power generation income is appropriate, and it is hoped that all will be left to county-level finance. In addition, in order not to increase the burden on wind power companies, if wind resources taxes or resource fees are imposed, wind power on-grid tariffs should be appropriately adjusted.
BLG Digital Network Co., Ltd. , http://www.gdnetworkcable.com