Lead Battery Consumption Tax 4% Average Profit Only About 3%

The consumption tax of lead-acid battery, which has been discussed for a long time, has finally been implemented. Although it was finally confirmed that a one-year tax on lead-acid battery products was postponed, and the tax rate was also reduced from 5% to 4% as discussed, the leading enterprises in the industry still expressed their concerns about SMM recently.


On January 26, the notice of the Ministry of Finance and the State Administration of Taxation on the collection of consumption tax on battery coating (CFS [2015] No. 16) clearly stated that "consumption tax on lead battery shall be postponed before December 31, 2015; from January 1, 2016, consumption tax shall be levied on lead battery at the rate of 4%."


In response, Zhang Tianren, chairman of Tianneng group, told SMM that the consumption tax will make the lead battery enterprises fall into a serious survival crisis and become the "last straw" to crush the lead battery industry.


He revealed that at present, the profit of lead-acid battery products in China is only about 3%. Once taxed at the rate of 4%, there is no doubt that the production cost of lead-acid battery will continue to increase, the capacity and level of environmental protection and technological transformation of enterprises will be restricted, and lead-acid battery and its supporting industries will suffer a fatal blow. Therefore, China's lead-acid battery and its related enterprises are strongly opposed to the collection of lead-acid battery consumption tax.


In addition, he also said that the lead-acid battery consumption tax is to solve environmental problems and should be included in the environmental law, not the consumption tax policy.

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AVIC-Tech (Xiamen)Electric Power Technology Co.,Ltd is a high-tech enterprise specializing in R&D, manufacture, sales and service of high-end power supply. Our flagship products are industrial UPS (1kVA-800kVA), dynamic voltage restorer (10kVA-2000kVA), and lithium battery system, which are widely used in nuclear power, electric power, petroleum and petrochemical, rail transportation, industrial manufacturing and other fields.

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