On November 25, the Ministry of Finance and the State Administration of Taxation issued the "Notice on Adjusting the Consumption Tax Policy" (Cai Shui  No. 93) to cancel the automobile tire tax item, which will be implemented from December 1, 2014. The China Rubber Industry Association has called for 21 years of â€œeliminating the consumption tax on bias tires and motorcycle tiresâ€ and finally has a result, and triggered a rise in the tire industry sector. Undoubtedly, it also brings certain advantages to the tire industry under the double impact of the US car and light truck tire double reverse and composite rubber standard rubber content reduction.
"The consumption tax policy when the planned economy transitions to the market economy is obviously unsuitable under the conditions of today's open market economy. It is extremely unreasonable to levy the consumption tax on the bias tires. Eliminating the consumption tax of 3% of the bias tires is beneficial to the tire enterprises. Increase self-accumulation and technological transformation to improve the ability to resist risks.â€ Cai Weimin, former Secretary General of the China Rubber Industry Association Tire Branch, believes that â€œalthough the current bias tire production is already very low, there is still demand in specific markets. Limited to tire structure and operation. Environment and customer needs, in some environments, radial tires can not replace bias tires, especially agricultural and forestry machinery tires, industrial vehicle tires, special vehicle tires (mainly military tires), etc. Therefore, some well-known tire companies in China still retain There are bias tire products."
According to the China Rubber Industry Association, among the 48 tire member companies in 2013, there are still 26 companies producing bias tires, with an annual output of 39.43 million. In the first 10 months of 2014, the output reached more than 34.79 million.
Cai Weimin said that in 2001, the state canceled the radial tire consumption tax, which greatly reduced the development of the radial tire. After that, it ushered in the rapid development of the radial tire, and laid the foundation for China to become a world tire country. Although the proportion of the output of the bias tire is much lower than that of the radial tire, the bias tire is still an indispensable product in specific industries and specific uses. Since high-performance radial tires such as green tires have become the development direction of the industry, the elimination of bias tires will not blindly develop bias tires. This part of the benefits will enable enterprises to upgrade their technology and improve the bias tires. Product quality and performance.
It is reported that the cancellation of the consumption tax has also brought positive benefits to the tire industry stock market. In the Shanghai and Shenzhen stock markets, except for the double-currency shares, due to major issues scheduled for December 1 suspension, S Jiatong fell 1.48%, the company's shares (no production of bias tire products) fell 0.97%, when closed on December 1 The other three stocks all rose more than 2%, of which Fengshen shares rose 2.60%; Qingdao Double Star rose 2.36%; é»” Tire A rose 2.27%.
"Motorcycle tires canceled the consumption tax news, many companies have telephone consultation. It can be said that we have been dragged down by the tire industry for more than 20 years, and now finally have the results." Yang Canguang, secretary general of the China Rubber Industry Association, the car tire branch, said "20 Over the years, the Association has actively reflected the industry's demands to the relevant state departments, and has repeatedly written reports to the State Administration of Taxation and the Ministry of Finance, requesting the cancellation of the consumption tax on motorcycle tires."
Yang Canguang introduced that in the past two years, three-wheeled and four-wheeled motorcycles and electric vehicles have been popular in the market, and they have been widely welcomed by farmers. The number of supporting tires and the demand for new specifications are also increasing. It is expected that in the next few years. It will also maintain a situation of both supply and demand. In addition, leisure and entertainment products, such as playground cars, scooters, ATVs, go-karts, lawn mowers and other small all-terrain tires, as well as sports bicycle tires and other new products have become the new favorite of consumers. However, because these products are subject to consumption tax, or the consumption tax is not uniform across the country, it brings pressure and confusion to the enterprise, and also causes market unfairness.
It is understood that in 2007, the State Administration of Taxation approved the issue of the consumption tax on small all-terrain tires by Guoshuihan  No. 723. Small all terrain vehicles such as scooters, ATVs, and karts have low speeds, are not allowed to be licensed, and are not allowed to travel on the road. They are different from cars or other vehicles in general, and their tires are in accordance with small wheel diameter agricultural tires. The standards and process development and production, for the tires of such vehicles, if used in general with cars or other vehicles, the consumption tax should be levied according to regulations. If it cannot be used with cars or other motor vehicles, it is not subject to the scope of consumption tax, and no consumption tax is imposed. Yang Canguang said that since there is no national standard for small all terrain tires, there is no uniform operating standard for the implementation of the approval in the provinces. Therefore, there have been different implementations of the consumption tax on small all terrain vehicles. Some provinces have taxed, and some provinces have taxed. No taxation.
Yang Canguang believes that the cancellation of the consumption tax is not only conducive to the transformation and upgrading of the tire industry, but also the structural adjustment, and the situation of the implementation of the different consumption tax on the small full terrain vehicle tires has also disappeared, which will help the market to compete fairly and for leisure and entertainment products. The development of tires.
The industry believes that although the output value of tires (including motorcycle tires) that cancel the consumption tax is not large in the whole industry, these products are indispensable products in specific fields and specific markets, and they are also facing further upgrading of products. The need, therefore, the elimination of excise taxes can improve the quality and performance of these products, making them better serve specific application areas, and further energy saving and emission reduction.
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