What does the reduction of the tax rate for the processing industry of precision mechanical parts to 13% mean?

The end of the year is the peak season for precision mechanical parts processing, and many mechanical parts processing factories are working overtime to meet the delivery date. On the whole, this year is still a good year, especially the government has comprehensively reduced the burden on real enterprises. Among them, the most eye-catching is that the value-added tax rate of the precision machinery parts processing industry has been reduced from 16% to 13%!

For spare parts processing enterprises, the reduction of tax rate is an annual benefit. You must know that the last tax rate adjustment for the spare parts processing industry was reduced from 17% to 16%, just to test the market's reaction. Now reducing the ratio by 3% is equivalent to a total tax of 100 billion yuan, which is enough to show the country's great determination to encourage the real economy such as precision mechanical parts processing.

As we all know, with the rising cost of labor and raw materials, the processing industry of precision mechanical parts is becoming increasingly difficult, basically hovering at the point of profit and loss, and the order will be a mess if the order is not received. Because spare parts processing enterprises are all asset-heavy industries, they need to invest a lot of resources in the early stage, including land, equipment, raw materials and labor costs. Only after the processing and shipment of precision mechanical parts are completed, the cost can be recovered uniformly.

Therefore, capital flow management has become a very important skill for precision parts processing companies. Mechanical parts processing manufacturers will have special capital management departments to do investment planning and financial tracking. At the same time, large-scale CNC precision machining enterprises rely on their own influence to obtain convenience in local investment promotion, such as easier policy care, and corresponding preferential treatment in terms of land, taxation and manpower recruitment.