China Woods Association calls for reduction of wooden floor consumption tax

On May 24th, the China Timber and Wood Products Distribution Association submitted to the National Development and Reform Commission, Department of Resource Conservation and Environmental Protection and the Ministry of Finance of the Ministry of Finance, the “Proposal for the Reduction of Consumption Taxes on Wooden Flooring”, China Wood Association [2012] No. 11, It is suggested that relevant departments can reduce the consumption tax on wood flooring, and study and formulate incentive policies for the comprehensive utilization of wood industry in the flooring industry to promote the rapid development of the industry.

It is understood that in 2006, the Ministry of Finance and the State Administration of Taxation, the Financial and Tax [2006] No. 33 Circular on Adjusting and Perfecting the Consumption Tax Policy clearly stated that a 5% consumption tax shall be imposed on solid wood flooring, solid wood composite flooring, and solid wood finger grounding plates. The tax rate has been used for more than 6 years to curb the consumption of pure solid wood flooring, but it has also adversely affected the development of the flooring industry and the comprehensive utilization of resources.

In response to the industry's call for reducing consumption tax, since December of last year, the China Wood and Wood Circulation Association-wood floor circulation professional committee visited more than 30 flooring companies in Nanxun, Wujiang, Shanghai, and Guangdong, targeting the downturn in the industry. The difficulties encountered by the company's business operations and entrepreneurs conducted in-depth discussions, and sought the advice of industry experts, combined with the current downturn in the wood flooring industry, brainstorming, formed the report.

The report summarizes the development of the wood flooring industry in China and the main problems faced: the domestic market is not in demand, the industry product sales decline; the foreign technology and trade barriers cause the export of wood flooring in the country to be blocked; corporate taxes and fees are too high, production can not pay, Operation is difficult. With the improvement of floor production technology, wood floor production has been developed toward the comprehensive utilization of resources, and tax reduction is imperative.

China Timber and Wood Products Circulation Association will further follow-up developments, organize relevant departments to the company to investigate and investigate related issues, reflect the voice of the enterprise, give full play to the role of industry associations, and lead the industry in a healthy and rapid development. At the same time, the Flooring Committee of the China Timber and Wood Products Distribution Association also welcomes the contact between the vast number of flooring companies and the association, and makes extensive comments and suggestions to make its due contribution to the rapid development of the industry.