The rise of a great power: starting with military industry

Chapter 805: Catching a sheep and wooling it?
Panshan Group Headquarters.

Originally, Liu Tao planned to go to Guifei Group to check the condition of the passenger plane.

As a result, due to the sudden notice, I had to change my itinerary.

"Leader, tell me, how should we change the tax?" Liu Tao was speechless and felt a little aggrieved.

In order to cooperate with tax reforms such as the business tax to value-added tax reform, Panshan Group sacrificed its own interests. The weapons industry system paid 10% of its turnover as tax, while the civilian system paid 20% of its turnover as tax.

Logically speaking, as a reform pilot unit and in the field of weapons industry system, and most of its activities are in high-tech fields encouraged by the state, Panshan Group does not actually need to pay much tax.

Even if you pay, the tax you pay each year will be very little.

As the country's largest taxpayer, Panshan Group has been the country's largest taxpayer for ten consecutive years.

If nothing unexpected happens this year, it will once again become the country's largest taxpayer.

Even if it is a tobacco company that specializes in tobacco, its tax payment will certainly not be as much as that of Panshan Group.

"Comrade Liu Tao, don't be emotional. This is also for the development of the country!" Wang Qian, who came to negotiate, said hurriedly.

Liu Tao actually called him 'leader', his dissatisfaction was obvious.

They are old acquaintances.

This has happened more than once or twice.

Before the Spring Festival every year, Wang Qian would rush from Beijing to the Panshan Group headquarters to collect the taxes paid by Panshan Group.

As the largest taxpayer in the country, and due to the special nature of Panshan Group, each of its subsidiaries does not pay taxes separately. Instead, the taxes are aggregated to the Panshan Group headquarters, which then pays them directly to the relevant units once a year.

"Leader, take a look, which military factory in the country pays taxes like us? Even the money we earn from overseas repair shops, we pay taxes in China. There are others, such as in Hong Kong, we have already paid taxes there once, and we pay again in the mainland, do we have anything to say?"

Liu Tao became more and more dissatisfied as he spoke: "You can't just pull the wool out of a sheep. Sooner or later, it will bulge out!"

"Otherwise, we will just pay taxes according to the state's regulations. Anyway, the tax laws were unified last year." Liu Tao expressed his dissatisfaction.

Before the reform and opening up, China's tax system was relatively simple and unified. After the reform and opening up, China gradually realized the unification of the income tax, goods and services tax system and property tax system.

In terms of the income tax system, last year the Sino-foreign joint venture income tax law and the Foreign Enterprise Income Tax Law were merged into the Foreign-invested Enterprise Income Tax Law, thus achieving the unification of the income tax law for foreign-invested enterprises.

Currently, there are plans to merge the various income taxes levied separately on state-owned enterprises, collective enterprises and private enterprises into a unified corporate income tax, and to cancel the three bonus taxes and state-owned enterprise adjustment tax for enterprises with different income systems, thereby unifying the income tax system for domestic enterprises.

On the other hand, it is also planned to merge the personal income tax levied on foreigners in the past, the personal income adjustment tax levied on Chinese people, and the income tax on individual industrial and commercial households into a unified personal income tax, thereby achieving the unification of the personal income system.

According to the current preliminary proposal, the corporate income tax rate is a 33% proportional tax rate, while the value-added tax rate is 17%!

The tax rate seems very high, but it is not based on turnover, but on taxable income, and tax exemptions and tax credits can also be deducted.

According to this calculation, the taxes that Panshan Group has to pay in the civilian sector must be less than 20% of its turnover. "In theory, the high-speed railways, highways, large reservoirs and hydropower stations we built should all be paid for by you, but you don't have to pay, you sit in the office with your feet up and make tea, and now you want to increase our tax rate?" Liu Tao was very dissatisfied.

Even if the tax rate is only increased by 1%, the money involved will be tens of billions!
What's more, this means raising the tax rate by 5%, which means that the annual tax to be paid will be more than billion.

Wang Qian didn't know how to respond. After all, it was really a bit bullying.

Over the years, Panshan Group has been a role model in paying taxes. Its turnover is clear and it pays all the taxes it should pay without any ambiguity and it never deceives or defaults on taxes.

Every time he came, the taxes for the day were settled clearly.

It can be said that in terms of paying taxes, Panshan Group is simply a model student.

Another very important aspect is that Panshan Group encourages its cooperative enterprises to pay taxes and does not cooperate with enterprises that defraud taxes. This allows the tax bureau to collect a lot more taxes invisibly.

If everything is carried out according to the current rules and regulations as Liu Tao suggested, Panshan Group will definitely pay much less tax.

As far as weapons-related industries are concerned, no taxes need to be paid.

There are also relevant tax reduction preferential policies for products supported by other countries or exported.

If he agreed to carry out this plan, he would definitely be criticized to death when he returned to Beijing.

The leaders would point at his head, poke his spine and scold him for being stupid.

"Comrade Liu Tao, there is nothing we can do about it. The people above are poor, but the provinces below are extremely rich. I have been wearing this shirt for several years and I can't bear to change it." Wang Qian complained.

Liu Tao rolled his eyes. "Then you should go to the provinces and cities. Why are you looking for us at Panshan Group? We have already done what we should do. We have done enough."

"Look at the taxes we pay every year, which are constantly setting records. We also do a lot of things that we shouldn't be responsible for. When our group increases wages and distributes some benefits, you complain and say this is not okay and that is not okay. Why do you just ask us to pay more taxes?" Liu Tao couldn't help but complain, "Leader, you are really undermining our enthusiasm by doing this. You can't just come to us when you have no money."

Wang Qian blushed.

This is a slap in the face in public.

Just before the Spring Festival, he publicly criticized Panshan Group's salary system for being too high during a meeting, saying it was not the style that a central enterprise should have. It was outrageous for everyone to pay personal income tax.

The result is that he was slapped in the face by Liu Tao.

Liu Tao did not give in, he was also feeling upset about this.

Panshan Group has paid enough taxes and has never asked the country for a penny from the beginning to the end. It has continued to grow and develop through self-reliance, and has completed all the tasks assigned by the country without fail and very well.

Panshan Group also actively uses funds to participate in domestic construction and promote the development of China's industry. Many things are done several years in advance.

Although the subsequent operating rights are as long as 30 to 50 years, with such a huge investment, the whole society generally believes that it is a loss, which has a completely different meaning.

(End of this chapter)