Taxes on electricity dealers fear injury and entrepreneurial passion

Ye Tan

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.

This year, the national "two sessions", Suning chairman Jindong thrown "electric business Tax theory", the goal is to maintain the traditional physical retailer and E-commerce store's fair position. It is understandable that traditional businesses and electronic businesses must be fair in order to avoid favoritism, 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 electric companies.

It must be seen that China is different from the U.S. The U.S. business environment is relatively fair, and China's business environment by a variety of taxes, lots, high cost of logistics tore riddled with holes, young entrepreneurial environment inferior, E-commerce is to provide young entrepreneurs a valuable breathable hole, is to break through the local blockade and backward business environment opportunities. If the US levies a tax on electricity dealers just to restore a fair trading environment and increase the cost of consumption in some states, our tax on electricity dealers is likely to completely disrupt the good business environment that is now emerging and to put young people under the yoke of the traditional bad business environment.

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. Entrepreneurs toil, are working for the landlord.

More importantly, E-commerce can evade the high entrepreneurial administrative costs, open a real shop East run to seal, in the Electronic mall open a small shop more convenient, after-school or spare time can be online sales of products. Huang Kaiping, a tax researcher at the Institute of Social and Economic Research, said: China and the United States have different backgrounds, and most of Taobao's owners have paid taxes. As long as it is registered in the Trade and Industry Bureau of SMEs and even self-employed, have paid taxes.

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 everyone knows, Ali small loan core resources is the transaction data, control the risk of the main credential is also the transaction data, let Taobao and other power to hand over the transaction data, is tantamount to let them out of the core resources, not only e-commerce is affected, the future of electronic finance 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. This is beneficial to China's manufacturing breakthrough in global trade barriers, especially for the Pearl River Delta, Yangtze River Delta and other traditional export-oriented manufacturing base. On the other hand, for E-commerce platform, China's small businesses have been relatively uniform and 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.