China's mold industry upgrade expects tax policy support

Editor's note: In recent years, the domestic market for the development of precision molds has been good, but development requires investment. It is not easy for companies to accumulate and raise their own money. Mould entrepreneurs urgently hope that the state can give support to mold companies in terms of policies.

China's mold industry is rapidly rising channel

Modern mold technology has become one of the important indicators to measure the level of manufacturing in a country. Therefore, the industry uses the “origin of an affluent society” and “amplifier of economic efficiency” to describe the importance of the mold industry. Without high-level molds, it is impossible to manufacture high-level industrial products. Its pulling effect on the economy can not be underestimated. According to Luo Baihui, deputy secretary-general of the Shenzhen Mould Technology Association, the proportion of the mold industry that can drive related industries is about 1:100, that is, the mold industry develops 100 million yuan, which can drive related industries by 10 billion yuan, but the current market for domestic production molds meets With a rate of less than 80%, the satisfaction rate of middle-to-high-end molds is less than 60%, which has led to a large number of foreign molds imported annually in China. The import and export deficit of mold products exceeds USD 1 billion.

Many domestic companies are confident that they can shorten the gap with foreign molds in a short period of time. Luo Baihui believes that in recent years, the development speed of the foreign mold industry has slowed down and is shifting to China. The mold industry in China is in a fast rising channel. Others need to take more than 10 years to walk. We may only need several years to Move past. However, it is difficult to realize the strength of the enterprise alone. At this time, it is particularly necessary for the state to guide its policy and support it financially.

Excessive taxation has become a bottleneck in the development of the mold industry

Today's mold manufacturing industry has long since abandoned the traditional arts and crafts production methods of manual design and experienced masters of fitters, and entered the era of modern industrial production. Digitized, informatized CAD/CAM/CAE technology and CNC machine tools are widely used. Although computer-aided design (CAD) is widely used in the mold manufacturing industry, there is no related software with independent property rights that is equivalent to the international level in China. The requirements of modern production have prompted the domestic mold industry to introduce relevant software and high technology, and investment has continued to increase. With the large-scale application of information technology, the cost of introducing a set of software to enterprises is more than tens of thousands of dollars. It is estimated that at present, China's mold industry has an annual investment of about 6 billion yuan in technical and R&D investment. Many companies have introduced many advanced foreign equipment. However, overall, the equipment level is still lagging behind that of foreign countries, especially the numerical control rate of equipment. And CAD/CAM application coverage is even lower.

According to Luo Baihui's survey, mold companies purchase coordinate grinding machines that are expensive at around US$400,000. The curve grinders they purchase from abroad do not include a tariff of US$280,000. It is the high-tech characteristics of the mold industry that determine its high investment. At the same time, high technology and high investment do not mean high output. Luo Baihui said that this is determined by the characteristics of single-piece mold production. Moreover, the production cycle of the molds is long, and it takes less than 1 month for the molds. The accumulation of funds by the companies is slow. Because it is not mass production, the completion of each mold is equivalent to the development of a new product, and the risk of investment is also large.

Although the output is low and the profit is low, the VAT rate of the mold industry is the highest in the machinery industry. Compared with other mechanical products, the technical content of the mold is high, the active labor consumption ratio is significant, and the material consumption is relatively small. The average material consumption of the product generally only accounts for 20% to 30% of the total cost. Due to the large part of the value-added tool, the VAT rate is more than double the average of other mechanical products.

In addition, the mold production personnel also focus on the mold industry investment. High-precision equipment requires high-quality staff operations, and regular personnel training is a big investment. There are few colleges and universities that specialize in cultivating mold production talents. Talent training is mainly conducted by enterprises. The imported foreign equipment will not be used by domestic workers and can only be sent to foreign countries or trained by experts. Many high investments have made the high value-added of the mold industry a bubble, and high value-added tax has become a burden. Luo Baihui pointed out that this situation is not commensurate with the characteristics of modern molds that are highly invested in industries. The problem of overtaxed taxes has become a bottleneck restricting the further development of China's mold industry, and it is urgently needed for the country to resolve them at the policy level.

The mold industry still needs policy support

In countries where the manufacturing industry is advanced, its mold industry must be developed, such as Japan and the United States. It is understood that these industrialized countries all have the mold support policy that can be used for reference: the mold factory purchases equipment; the government grants interest-free, low-interest loans; the purchased equipment can be used to offset corporate income tax; and the mold enterprises are subject to tax incentives, such as the Singapore government’s High-precision plastic mold production enterprises to implement tax-free policy for ten years and so on. Luo Baihui believes that in view of the important role of the mold industry in the manufacturing industry and the weak position of China's mold industry, the state should give strong support to the policy. Specific suggestions include: hoping to learn from Japan's experience, formulate relevant laws and regulations for mold and other industries that need to be rejuvenated in China, and provide support in the form of legislation in finance, taxation, technical reform, etc.; hope to reduce the value-added tax rate of mold companies and reduce mold companies VAT burden; We hope to reduce import and export tariffs on key equipment and raw materials used in the production of molds and molds, and provide discounted or low-interest loans on technological reforms to encourage investment in the mold industry; hope that the relevant government departments will establish mold development funds. For the development, research and innovation projects in the field of common technology in the field of moulds, and support for the "leading enterprises" and so on. In short, the mold industry is looking forward to the country's long-term support policy for all mold companies.

Based on the characteristics and importance of the mold industry, the state has given certain policies to support it: From 1997 to 2005, 160 key professional mold companies across the country enjoy a 70% tax rebate policy. However, for more than 20,000 mold companies across the country, only 160 companies enjoy the tax rebate policy, which is undoubtedly a drop in the bucket. Most companies still have heavy tax burdens. Even if the tax return, on the other hand, it restricts the flow of corporate funds and hinders the reinvestment of technology and equipment by the company. Luo Baihui believes that the development of the mold industry cannot be separated from the long-term support and guidance of the government departments. For enterprises, the government's policy is an excellent resource and an engine for enterprise development. Enterprises should fully enjoy policy resources, interpret policies, develop them rationally, make rational use of policy advantages, and overcome technological and market instability caused by innovation activities. Of course, as the government can also use the government's public resources, establish guidelines for use, and promote the development of enterprises, to achieve the purpose of increasing public benefits.