The era of “exorbitant taxes and levies” in the lead-acid battery industry is coming

Hong Xu, secretary-general of the Lead-acid Battery Professional Committee of the China Electro technical Society, told reporters that the lead-acid battery industry has set a levy on consumption tax, and relevant parties have received a draft for taxation from the Ministry of Finance.

Hong Xu pointed out that the competition in the lead-acid battery industry, especially in the electric bicycle industry, has entered a stage of white-hot, and the profit level of the industry has entered a break-even point. Increasing taxes will cause the industry to reshuffle again, and the price of lead-acid batteries will definitely rise. A number of industry insiders pointed out to reporters that the lead-acid battery industry is still in a chaotic stage. Many laws and regulations have not yet been perfected, industry rectification has not yet been completed, and the consumption tax should be postponed.

At present, lead-acid battery enterprises have been in a period of meager profit or even loss due to factors such as overcapacity, and the lithium battery industry, which is favored, is also difficult to replace due to factors such as technical safety and high cost. At this time, taxation may bring heavy blows to the industry. Sun Tao, a lead analyst at Fubao Information, said that leading companies in lead-acid batteries can achieve small profits, but 70% of small and medium-sized enterprises are still at a loss, and overcapacity is one of the main reasons. At present, lead-acid battery companies are difficult to make profits, and some large companies are also engaged in price wars to force some small enterprises to withdraw from the market.

A responsible person of a large domestic lead-acid battery listed company told reporters that since the rectification of the lead-acid battery industry in 2011, the number of companies registered in the industry has dropped from more than 1,700 to more than 300, a large number of technology is backward and environmental protection is not up to standard. When the company exited the market, the supply of the industry was in short supply, and the price of lead-acid batteries was higher. The gross profit margin of the industry was as high as 40%. However, the good times are not long. With the rectification coming to an end, a large number of enterprises have sprung up under the lure of high gross profit. A large part of them are enterprises with no production qualifications, and large enterprises such as Chaowei and Tianneng have expanded wildly. The production capacity has brought overcapacity in the industry, and then a new round of price war has been opened. The gross profit margin of the industry has also gradually declined. Hong Xu estimates that the current industry gross margin is less than 5%.

Hong Xu believes that the most affected by taxation is some compliant lead-acid battery enterprises, which are good for some enterprises that have no production qualification or even no business license. “Big companies have invested a lot of effort in environmental protection equipment. In general, the environmental protection investment of formal enterprises exceeds 20% of fixed assets. Some environmentally-friendly enterprises of illegal production enterprises are even zero. These enterprises may also evade the collection of consumption tax.

The industry believes that it is too early to levy the consumption tax. Chunming Yang, the chairman of Jiangsu New chunxing Renewable Resources Co., Ltd., a regenerative lead manufacturer, told reporters that the original intention of collecting consumption tax in the lead-acid battery industry is good, and many places in foreign countries have been successfully implemented. However, the current conditions for domestic collection are not yet mature. However, a large number of lead-acid battery companies that violate regulations or fail to meet the standards exist, and the first to be affected by the consumption tax is the compliance enterprise. The original intention of the consumption tax on lead-acid battery industry is to subsidize the lead recycling industry and reduce the pollution to the industry. The domestic lead recycling industry is more chaotic. At present, less than 20% of formal enterprises do not need to rectify the industry. Not too late.

Hong Xu also said that the current market levy conditions are not yet mature, and it is recommended that the industry's various laws and regulations be perfected in 2015, and the lead-acid battery industry will be re-organized after the completion of the rectification.

The page contains the contents of the machine translation.