Tan: Electricity dealers ' tax will hit China market

"Securities Times," the http://cy.stcn.com/community ("well-known financial critics, financial columnist," The Tan (Treasury) said that the electricity business levy motion if implemented, will be a heavy blow to China's electricity industry.

The original text reads as follows:

If the electricity business tax is implemented, it will be a heavy blow to China's electric business industry, and a young man's entrepreneurial passion is being hit.

On the two sessions this year, Suning chairman Jindong thrown out "The theory of Electric business levy", the goal is to keep the traditional physical retailer and E-commerce store's fair position. On the surface, it is understandable that traditional businesses and electronic businesses must be fair to avoid favouritism, not only in China, the United States will also vote on the Fair Market Act, the main content of which is to allow the U.S. state governments to simplify their respective tax laws on the premise of a local sales tax on network power companies.

China and the United States are different, the U.S. business environment is relatively fair, China's business environment by a variety of tax division, segmentation, high cost of logistics torn, the young entrepreneurial environment inferior, E-commerce is to provide young entrepreneurs a valuable vent hole, is to break through the local blockade and the backward business environment opportunities. If the U.S. tax to the electricity dealers is only to restore a fair trading environment, so that the consumption costs of some states to rise, and China's tax on the electricity dealers may completely destroy the current emerging good business environment, so that young people by the traditional bad business environment shackles.

E-commerce helps to set up a unified market, although local governments are keen to recommend local brands, but they cannot prevent consumers from choosing a national or global brand in an electronic mall. Traditional businesses have to face fragmented markets, from one region to the next, to the business of another, while large commercial retailers are plagued by taxes on the headquarters economy, while small sellers are not seen at all in the era of rapid industrialisation, and there is no room for survival.

E-commerce can also circumvent the exploitation of the landlord. The traditional business is facing high rents, China's more food, many real estate investors have already bought a big city and the city's core location of the shops, waiting for the small owners to open the shop, can be fooled into the public eat rent of the carefree days.

Similar news on the Internet, such as the rent occupies more than 40% of the large budget hotels, 2012 7 Days Hotel quarterly shows that the proportion of rental expenditure accounted for the hotel operating expenses of 35.37%; As a quarterly report, rental costs and gas and water utilities expenditure accounted for 44.85% of the hotel operating expenses. and small budget hotel rents accounted for more than 50%. According to survey data from professional organizations, the overall rental rate of commercial property in Guangzhou has increased by about 5% to 10% in the past two years, and more than 15% of the popular areas. Last August, "Yangcheng Evening News" reported the Guangzhou catering industry high rent pain, catering shop rental costs accounted for 20% of revenue, gross margin less than 70% unprofitable. Companies either endure high rents, or have to bear the cost of decorating and transferring shops after moving. Li Ning closed 1200 physical stores in the first half of last year, and many physical stores became experience shops, where rising rents were an important factor. Entrepreneurs toil, are working for the landlord.

More importantly, E-commerce can evade the high entrepreneurial administrative costs, open a real shop East run west to knock Chapter, in the Electronic mall open a small shop more convenient, after-school or spare time can be online sales products. Huang Kaiping, a tax researcher at the Institute of Social and Economic research, said in an interview that China and the United States have different backgrounds, and most of the owners of Taobao have paid taxes. As long as it is registered in the Trade and Industry Bureau of SMEs and even self-employed, have paid taxes. Including consumers in the purchase of products, there will be invoices. So the Suning bill actually became: against unregistered Taobao personal sales behavior, demand to pay taxes, Mr Huang Kaiping, "Su Ning submitted a motion is in the oppression of the people." In fact, Suning's move objectively has two major results, or to regain the brilliance of the line shop, or to improve the value of commercial rents, are bad for entrepreneurs.

Even if you want to levy a tax on electricity dealers, you must find a way to differentiate between large businesses and small businesses, to levy on large businesses and to exempt small businesses. Taobao will need to provide complete sales records and data to tax authorities for tax collection. But everybody knows, Ali small loan of the core resources is the transaction data, control the risk of the main credential is also the transaction data, let Taobao, Ali and other electric dealers handed over the transaction data, is tantamount to let them out of the core resources, not only e-commerce is affected, the future of the electronic financial industry will be greatly negative impact. The only way is to let the electric forwarder withholding, the key problem, the relevant departments at ease?

China's small-market players have made great strides through E-commerce, and since 2007 China has had a large number of small and medium-sized companies selling their goods to American consumers on ebay's global platform. including ZTE (000063, shares), Fank have been in the ebay platform, which is conducive to China's manufacturing breakthrough in global trade barriers, especially for the Pearl River Delta, the Yangtze River Delta and other traditional export-oriented manufacturing base is very beneficial. On the other hand, for E-commerce platform, China's small businesses have been relatively uniform, relatively fair treatment, from e-commerce derived from electronic consumption, electronic finance, the national network of Things, for the original bad business ecology has produced a huge impact.

Electronic mall will appear fakes, but also appear waiter corruption, but flaws, electronic mall vitality, fairness is obvious to all. Tax on E-commerce must be cautious, taking into account all the details, so as not to undermine the future development of China's business prospects, undermining China's business and Chinese-made leapfrog development opportunities.

(Securities Times News Center)