The August 4th military parade not only shocked the audience at the scene, but also shocked the world through the media. It also showed the world that the ancient oriental country has the strength to protect its own country's security.
It's just that Li Jianhui and others' excited mood in the morning did not carry over to the afternoon, and what they had been worried about finally came.
The upper management has obviously seen the disadvantages of still subjecting 15% profit tax to products sold domestically, which has seriously affected the development of the same industry internally.
In order to change this situation, the main leaders of the Ministry of Industry and the Ministry of Commerce specially met with Li Jianhui, Lei Juekun, Chartering Wang, Cao Guangbiao, Li Chaoren, Cao Wenjin, Li Zhaoji and others in the afternoon.
"We are all the leaders in our Chinese business community. We should be very clear that it is unfair and detrimental to the development of our internal enterprises that companies with domestic sales qualifications are still subject to a 15% profit tax rate like companies that sell products to exports.
I specially invite everyone to gather together today to communicate with you about the domestic sales tax rate of products in order to promote fairness in market development."
Although those present had different inner thoughts, they still expressed their support for the above decision.
When it comes to specific opinions on formulating the tax rate, everyone is silent. No one wants to be the one who takes the lead. If the tax rate is too low, it will offend the superiors. If it is too high, it will not only harm one's own interests but also offend peers.
When no one spoke, Minister Wang of the Ministry of Commerce spoke up: "Mr. Li Jianhui, currently you have the most domestic sales companies and the largest scale. What do you think about this?"
Li Jianhui, who originally didn't want to get involved in this, saw that Minister Wang had already called his name, so he could only talk about some of his own thoughts.
"Because of the different models, there is currently no precedent in the world to follow, and I can't come up with a good solution.
However, the future export production bases of our industries will be mainly built in the two special zones of Pengcheng and Ludao.
The production bases for domestically sold products will be located in cities open to the outside world such as Yuzhou, Yangcheng, Yongcheng, Shanghai, Qindao and so on.
Our company is willing to accept whatever tax rate is adopted by domestic product manufacturing companies. After all, our company must comply with local regulations when developing locally.
As for whether our products will be sold as imported products or local products in the mainland market in the future, this needs to be decided based on subsequent profits and costs."
Those present understand what Li Jianhui means. If the tax rate on domestically sold products is higher than the tax rate + tariff on exported products, then Li Jianhui's products will stop being produced in domestic production bases, and in the future, the products purchased in the mainland market will be imported products.
Li Jianhui's products are all big brands. Except for the possible impact of Taoda Group's products, there will not be much loss whether it is imported or sold domestically.
They are different. Many companies rely on the mainland market to make a living, and they all rely on cheap quantities to make profits. Once the domestic sales tax rate is too high, it will inevitably cause problems in their development.
Later, Cao Wenjin, Li Zhaoji, Lin Baixin and others expressed their stance one after another. No one came out to be a villain and they all expressed their willingness to accept the arrangements from above.
It's just that Minister Wang and others didn't feel happy at all when they heard these words. They hoped to reach a mutually acceptable result with Li Jianhui and others, rather than making a unilateral decision.
"Everyone, I also know that increasing the domestic sales tax rate of products has harmed your interests to a certain extent.
But I hope that everyone will not just focus on their own little piece of land, but also need to look at the problem from the overall level of our country.
We are not a small Hong Kong, and the tax rate cannot be 15%. Otherwise, our country will not be able to operate normally and security will not be guaranteed.
As a product export company, we can still maintain a profit tax of 15%. After all, this provides jobs for the country and creates foreign exchange.
However, the tax rate for companies selling domestic products cannot continue to maintain the profit tax rate of 15%. Whether everyone understands it or not, it needs to be implemented. Starting from January next year, companies selling domestic products will uniformly implement the new exchange rate.
We invite you to discuss today, and we also hope to come up with a suitable tax rate that will not affect the normal development of your enterprises as much as possible.
At the same time, I hope that everyone will not have any worries in their hearts and can speak out if they have any opinions. This will help the development of our industry in our mainland."
Seeing that no one was willing to speak, Charter Wang took over what Minister Wang said and said: "I understand everyone's inner thoughts. The increase in tax rates will indeed affect the interests of our industry.
It's just that as businessmen, we should know when enough is enough. Too much greed will only harm ourselves in the end.
I guess everyone has industries in other countries and regions. Apart from Hong Kong, are there any places where the tax rate is 15%, or even lower than this?
I can honestly say that except for a few so-called tax havens, there is none.
Whether it is the Baodao market or the Southeast Asian market, no place has such a low tax rate.
The profits tax for all companies selling domestic products is 15%, which is outdated in any sovereign country, and I hope everyone will give up some outdated ideas."
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"Mr. Bao is right. Xinjian Group and even our Tung Wah Association affiliated companies fully support this decision.
It has always been the corporate purpose of our Donghua Association not to interfere in the political governance of the country and region. The tax rate for domestic sales of products involves national policy and is not something we should participate in.
Our company will only adapt to local policies and has no right or ability to participate in formulating policies.
The world is bustling for profit. If it is profitable, no need to say anything, countless companies will flock to it.
We at Tung Wah Association have always followed this principle. Whether we invest in the Southeast Asian market in Baodao or in this market, it is all for profit.
I believe that all business representatives present are like this. No matter how loud the slogans are, they are all for the sake of profit.
Today's meeting, to put it simply, is about how to balance the fairness of market competition between our foreign-funded enterprises with domestic sales qualifications and similar mainland enterprises.
Taxes will definitely be raised, but how much should be raised should not be a question for us, but how the country's upper class will balance it.
There must be no problems with national taxation. Whether and how much the taxation of domestic peers can be reduced is the basis for our tax increase, and only the upper levels can make decisions on these.
Now to put it simply, our domestic sales corporate tax rate remains the same as the current tax rate for similar domestic companies.
If it's more complicated, it won't be decided in a month or two. After all, the country is so big and it's difficult to come up with a practical plan in a short time."
Although Li Jianhui's words were a bit harsh, those present understood in their hearts that Li Jianhui's words went straight to the essence of the matter.
Regarding the tax rate, they can decide through negotiation. The purpose of the meeting today is just to see their attitude.
They even believe that from the day the products were sold domestically on a large scale, the upper management has begun to consider the corporate tax rate for domestic sales of products.
It can be expected that the upper management has almost made preparations for this matter and is only waiting for implementation in January next year.
Meeting now is more about giving them a signal to prepare them.
No matter what their attitude is, the higher-ups will never harm the interests of domestic enterprises and the country for their own benefit.