"Value-added tax is the largest tax in the steel industry. This year, the value-added tax rate will be reduced by 3 percentage points, which can significantly reduce the tax burden of the steel industry and is generally welcomed by industry enterprises." said Chen Ziqi, director of the metallurgical and building materials department of China International Engineering Consulting Co., Ltd. This time, the value-added tax reduction is very strong, and the tax reduction and efficiency increase space for the ferrous metal smelting and rolling industry alone is as high as 20 to 30 billion yuan, which is of great benefit to promoting the high-quality development of the steel industry and downstream industries.

　　According to preliminary calculations, after the adjustment of the value-added tax rate, the tax burden per ton of steel will be reduced by about 20 to 30 yuan. This year, the steel mill's value-added tax cuts will reach 20 to 30 billion yuan. In addition, the decline in the value-added tax rate will also reduce the payment of additional taxes based on the value-added tax.

　 The effect of value-added tax reduction is immediate, which can significantly reduce the burden on enterprises, increase the profit margin of the steel industry, and enable steel companies to have greater confidence and ability to upgrade. In the past few years, through "de-capacity" and banning of "local steel", the steel industry has come out of the dilemma of losses in the entire industry. The profitability of the industry has returned to normal, but it is still facing arduous tasks such as accelerating transformation and upgrading and achieving green development. Through tax cuts, the benefits of steel companies will be further improved, and they will have greater capacity to promote industrial upgrading and energy conservation and emission reduction. These include increasing investment in innovation and better implementing innovation-driven strategies; increasing energy conservation and emission reduction, and promoting ultra-low emission transformation; reducing leverage and preventing risks, and reducing the excessive debt ratio of some steel companies as soon as possible.

　　 It is worth noting that value-added tax cuts will generally benefit the steel industry, but companies will benefit differently due to factors such as different product structures. Since value-added tax is a turnover tax levied on the added value or added value of goods in multiple links in the production, circulation, and labor services of goods, compared with enterprises that mainly produce low-end and large-scale products, they mainly focus on high-end and high-value-added products. Steel companies will have more room for tax cuts and efficiency gains, and the amount will be more substantial. It can be said that steel companies that vigorously promote high-quality development have a stronger sense of gain in tax cuts.

"The reduction in the value-added tax rate of the steel industry is also conducive to stimulating market vitality and driving downstream industries, especially the manufacturing industry, to reduce costs and increase efficiency." Chen Ziqi said that as a basic industry of the national economy, the favorable factors for tax reduction will also be transmitted to machinery, Many downstream industries such as automobiles, home appliances, and ships. In addition to increasing the efficiency of the steel industry, this tax cut is also conducive to supporting steel companies to cut prices and make profits, so as to expand market space and enhance the competitiveness of steel products. This is beneficial for reducing the purchase cost of downstream industries, driving a larger range of enterprises to increase their vitality, improving efficiency, and even enhancing the overall competitiveness of my country's manufacturing industry.