How does the New Deal for Tax Reduction affect the price of vegetables in Fuzhou?

The Ministry of Finance recently issued the "Circular on the Relevant Issues Concerning the Exemption of Value-Added Tax on the VAT of Vegetables," and clarified that since January 1, 2012, the VAT on vegetable circulation will be exempted. After the implementation of the New Deal, what impact will it have on the Fuzhou vegetable market? Will the price of vegetables in Fuzhou decline? The reporter conducted a visit yesterday.

It is understood that after the VAT exemption for vegetable circulation, the vegetable farmers will not be affected, and the farmers’ market and the vegetable wholesale market will be less affected. Large-scale retail enterprises such as supermarkets will become the biggest “winners” of tax reductions. It is estimated that sales will be 100 million yuan. Yuan vegetables can save about one million yuan in cost.

The heads of several large supermarkets in Fuzhou said yesterday: The tax cut will reduce the cost of vegetable circulation, and the retail price of vegetables in Fuzhou is expected to drop by about 4%.

It was also learned that before supermarkets purchased agricultural products directly from farmers, they often worried that farmers could not provide purchase invoices for agricultural products. After VAT exemption for vegetable circulation, supermarkets no longer worry about invoices, and the new policy will further promote “agricultural super matchmaking”.

Which dishes are tax-exempt?

Cabbage and leafy vegetables are not tax-free canned vegetables range Yesterday, the reporter logged on the official website of the Ministry of Finance learned that the Ministry of Finance, the State Administration of Taxation notice, in the form of an annex listed the list of vegetables enjoying tax policy, including There are 219 varieties in 14 categories including root vegetables, yam, leeks, cabbages, and leaf vegetables.

The relevant person in charge of the State Taxation Bureau of Fuzhou City reminded that the regulations stipulated that the vegetables processed through the processes of selection, cleaning, slicing, drying, packaging, dehydration, refrigeration, and freezing belong to the scope of exemption, but canned vegetables of various types do not belong to the scope of exemption. .

In addition, if the taxpayer sells vegetables and sells other value-added taxable goods, the sales volume of vegetables and other value-added taxable goods shall be separately accounted for. If there is no separate accounting, the vegetable VAT exemption policy shall not be enjoyed.

Who will benefit?

Impact of the wholesale market on smaller supermarkets as the largest beneficiaries Exemption from the circulation of vegetables VAT After the implementation of the VAT, vegetable farmers, wholesale markets, retail enterprises, who is the biggest beneficiary?

In this regard, the deputy director of the Ministry of Goods and Labor Taxation Department of the State Taxation Bureau of Fuzhou stated that in accordance with the regulations, farmers directly bring their own vegetables to the vegetable wholesale market and sell them. They have previously been tax-exempt; and a wholesale market’s traders are handed over from farmers. For the acquisition of vegetables, 17% of vegetable circulation VAT will be charged. However, since January 1, 2012, the VAT exemption point for exemption from vegetable circulation has been raised from 5,000 yuan to 20,000 yuan, and a large number of small and medium-sized vegetable purchasers (such as individual merchants in farmers' wholesale markets) have failed to pay taxes. The levy point, therefore, is exempted from VAT on vegetable circulation, and has a minor impact on the wholesale market of farm products. The impact on a few vegetable logistics companies, processing companies and supermarkets is relatively large.

It is understood that the total amount of vegetables sold by large-scale supermarket chains is more than 100 million yuan a year. Based on the average tax level of the industry, after the implementation of the new policy, the annual vegetable sales of a supermarket will reach 100 million yuan, which will save at least 1 million yuan annually. about.

Will the price of vegetables drop?

It is expected that the price of vegetables will decrease by about 4%

"Exemption from VAT on vegetable circulation is undoubtedly a big plus." Weng Huihui, vice president of Yonghui Supermarket, introduced that fresh raw and sideline products sold by Yonghui have been subject to VAT at the rate of 13% or even 17%. After the VAT exemption for vegetable circulation, the decrease in the cost will directly affect the vegetable price.

General Manager Chen Yongzhuang of Fuzhou Lantian Supermarket also believes that after the VAT exemption from vegetable circulation, the price of vegetables will definitely decline. He explained that at present supermarkets purchase vegetables usually in three ways: directly to farmers, to agricultural cooperatives, and to the wholesale vegetable market.

“At present, supermarkets are paying 10% of VAT on vegetables to farmers, and 17% on VAT on the wholesale market. Reducing VAT on circulation will definitely reduce vegetable prices, and it is expected to decline by about 5% overall. The general manager of Chen calculated an account for the reporter, taking 1.5 yuan/kg of radish as an example. If the supermarket purchases an import price of 1 yuan/jin from farmers in Beifeng, Fuzhou, and the supermarket retail price is 1.5 yuan/kg. The difference is 0.5 yuan, minus 13% of value-added tax in circulation (0.5x13%), vegetable prices can therefore be reduced by 0.065 yuan, a decrease of 4.3%.

Tax exemption will promote "agricultural super docking"

In addition to falling vegetable prices, Deputy Director Zhu of the Ministry of Goods and Labor Taxation of the State Taxation Bureau of Fuzhou introduced that exemption of VAT on the circulation of vegetables would also clear the barriers to circulation of vegetables and promote “agricultural super matchmaking”.

In this regard, general manager Chen Yongzhuang explained that, now, supermarkets to farmers and agricultural cooperatives purchase vegetables, there is indeed "the other party can not open a purchase invoice for agricultural products," the problem, hinder the "agricultural super docking" in the future if the vegetable distribution VAT exemption The supermarket will no longer worry about invoices, and the "super farmer docking" will be smoother.