China's private enterprises are trapped in three major difficulties: high taxes and high costs will push them to a dead end

More than 300 private entrepreneurs across the country attended the three executive committees of the 11th National Federation of Industry and Commerce in Jinan, Shandong Province, and generally said that "the days are sad." The current tight capital chain and high tax burden have brought unprecedented pressure on enterprises to survive. Many private enterprises, especially small and medium-sized enterprises, are unsustainable in their operations and their survival is difficult. Some entrepreneurs lack confidence in industrial restructuring, transformation and upgrading, and they are afraid of many uncertain factors in the economy. The lack of demand, high costs, high taxes and the current private enterprises are vital.

A serious overcapacity does not dare to invest can only "eat the old"

Founded in 2004, Henan Green Zhongyuan Modern Agriculture Group Co., Ltd. operates agricultural products (14.71, -0.21, -1.41%) in processing, tourism and real estate projects. At the peak of enterprise development, there are more than 5,000 employees and assets of more than 300 million yuan. , can achieve operating profit of more than 20 million yuan. Song Fengqiang, chairman of the company, said frankly that the days of 2014 were too sad. Apart from taxes, raw materials and labor costs, the company had no profit at all, and even had negative growth. "Under this grim situation, we must first preserve the life of the enterprise and then consider the long-term development of the enterprise."

Song Fengqiang said that the company is a gold customer of Bank of China (4.27, -0.06, -1.39%) for more than 20 years. There has been no overdue and interest-bearing loans for many years, and the reputation is also very good. However, since the bank took away 40 million yuan in loans last year, the company was almost limited to the state of production suspension. The company's more than 5,000 employees have been reduced to more than 3,000, and this trend is still intensifying. "The current global aggregate demand is sluggish, domestic demand is sluggish, and the company's production capacity is seriously overcapacity. If you don't dare to invest, you can only release the company's own heavy assets and eat it." He said helplessly.

Chen Luwen, Chairman of the Board of Directors of Sichuan Jinguang Group, Chen Xiande, Chairman of Chengdu Jiarun Group, Hu Keqin, Chairman of Beijing Luowa Group, and other private entrepreneurs have the same feelings as Song Fengqiang. At present, enterprises are struggling to survive, do not add, only do subtraction, can It is very good to keep the current production and operation, and it is not enough to adjust the industrial structure, transform and upgrade.

Chen Luwen, who is also the vice chairman of the Sichuan Provincial Federation of Industry and Commerce, said that in the past, the development of many private enterprises relied on low energy and high demand. Due to the sluggish domestic and international markets, the current manufacturing capacity is overcapacity, in China's major technology equipment manufacturing base and the national three. Deyang City Machinery Equipment and Equipment Center, one of the major power equipment manufacturing bases, a considerable number of private enterprises are operating at a loss.

Chen Luwen believes that overcapacity in the industrial sector and the inefficiency of economic operations brought about by it have become obstacles to economic restructuring and the upgrading of industrial structure. The disposal of excess capacity should play a fundamental role in the market, create endogenous demand, promote rational and orderly transfer of industries, and lead industrial upgrading through technological innovation and structural adjustment, and foster new economic growth points.

In addition, private entrepreneurs suggest that the current government administrative functions should be transformed, local governments should be directly intervened in investment, and the market mechanism should be self-regulating. Continue to strengthen macro-control of investment, control the two gates of land and credit, strictly control investment growth in industries with overcapacity, strictly formulate and implement industry development plans and industrial policies, and formulate stricter technologies, energy consumption, quality, environmental protection, and scale. And safety standards, improve market access thresholds, eliminate institutional barriers and provide necessary incentives to improve industry concentration, enhance the self-adjustment capabilities of the industry by improving independent innovation capabilities and strengthening advantageous brands.

Financial institutions "goose plucking hair" private enterprises use money "is expensive and difficult"

Some private entrepreneurs believe that "the bank is a mother, and weaning will die." In the current domestic economic downturn, it is imperative to change the development mode and adjust the production structure. While private enterprises are taking self-rescue measures to digest excess capacity, banks and other financial institutions temporarily lend money to make the private enterprises in distress worse.

At present, China's bank loans are implemented as “renewing old loans”, and private enterprises are “short-term loans and long-term investments”, that is, enterprises must refinance new loans after they have paid off their original loans. Song Fengqiang said that in the past, after the company paid off the loan, it could refinance it in less than half a month. But now the bank will not lend after the loan is withdrawn, and it can only increase interest rates through other channels, which inevitably increases the cost of the enterprise. .

"Enterprises are dead, and how to innovate, first of all, to ensure that private enterprises are alive." Chen Luwen said that the current domestic economic situation is forced to transform private enterprises is a good thing, but the bank's temporary lending behavior caused extremely tight capital of private enterprises. Affected by it, some private enterprises with relatively good production and operation conditions have products, markets, and sales. As a result, the capital chain is broken, which is like a "battery" to bring a fatal blow.

It is understood that there are currently more than 3 million small and micro enterprises and individual industrial and commercial households in Zhejiang Province, and more than 60% of enterprises or individual industrial and commercial households can not get loans. The manufacturing SMEs, which account for 95% of the total number of SMEs in Zhejiang Province, account for only 1% of loans from banks, and more than 80% rely on self-financing or private lending.

He Junming, vice chairman of the All-China Federation of Industry and Commerce, said that in recent years, relevant central departments and local governments have made great efforts to solve the problem of financing difficulties for private enterprises. They have also introduced some specific policy measures, but in fact, there is still no problem of making private enterprises difficult to raise funds. A fundamental change has taken place. In actual operation, SMEs with weak voices still have to face the two-tiered financial problem of “not getting” and “high price”. Financial institutions such as banks have been arrogant about the loan funds, which has led to the use of money in the real economy, which is both expensive and difficult.

Private entrepreneurs such as Song Fengqiang, Chen Luwen and Chen Xiande believe that the current bank tightening of monetary policy is the way for the country to achieve macroeconomic regulation and control and adjust its industrial structure. State-owned enterprises have administrative resources that can be fully utilized. Some large private enterprises have good political and business relations, but private small and medium-sized enterprises are the fragile sectors of the real economy, so they are the most affected. Some small and medium-sized enterprises have to borrow from private high-interest loans. Difficulties, some companies that cannot be maintained can only "run the road."

Private entrepreneurs suggest that financial institutions such as banks be instructed to innovate financial products and services, increase credit to private enterprises, especially small and medium-sized enterprises, and ensure that the average growth rate of financial institutions for SME loans cannot be lower than the average growth of loans in the entire banking industry. Speed, all commercial banks should set up a franchise agency dedicated to small and medium-sized enterprises, and implement independent accounting and independent approval.

In addition, to stop the bank's temporary lending behavior, to the company to "release water and fish", the company survived, and then structural adjustment, improve the scientific and technological content, and seek development. At the same time, further cultivate and improve the credit guarantee market, establish and improve the industry access, risk control and loss compensation mechanism of guarantee institutions, encourage the establishment of multi-level and multi-form guarantee institutions for small and medium-sized enterprises, and encourage private capital or qualified enterprises to invest in the establishment. Private guarantee institutions provide support in policy.

High tax burden and high cost pressure will force private enterprises to "dead road"

Private entrepreneurs in Jilin, Fujian, Guangdong and other places said that the high taxes, raw materials and labor costs brought great pressure on enterprises. Some companies have a tax burden of more than 30%, and employees' “five insurance and one gold” account for 40% to 50% of the cost. The current operating environment of SMEs has deteriorated, such as the rapid increase in the cost of labor for enterprises and the deterioration of the export environment.

He Junming said that at present, domestic and foreign demand is weak, labor dividends disappear, and cost increases have a greater impact on business operations. The rising cost of raw materials and the sluggish market are both compressing the profit margin of enterprises. High financing costs and even usury are pushing enterprises into the abyss. Together with high taxes, it can be said that enterprises are gradually pushing the road.

According to the statistics of relevant research departments, from the perspective of taxation, it mainly includes value-added tax, business tax, income tax, etc., and penetrates into every link of the enterprise. In terms of fees, it mainly includes education surcharges, water resources fees, social insurance premiums, etc. It is estimated that a fee of 0.5 yuan to 0.7 yuan is payable when paying a 1 yuan tax.

Private entrepreneurs from Hebei and Hunan said that the actual tax burden of SMEs has exceeded 30%, and some companies report that half of their profits are used to pay taxes. The average company's annual profit growth space is only 5%, but the financial cost is increased by 20%. In particular, small and medium-sized enterprises are still paying taxes on their losses, and they are increasing year by year. High taxes and fees have become the first development of private enterprises.

He Junming pointed out that financing is difficult, enterprises can reduce the scale of operations, high financing costs, lower corporate profits, but may have more profitable capital and opportunities. The high taxes and fees directly increase the production cost of the enterprise from the income and profits of the enterprise, and directly plunder the business results of the enterprise, but do not help the enterprise.

Wang Wenzhao, vice president of the China Chamber of Commerce, said that small and medium-sized enterprises are the main force in absorbing employment and the main force of tax payment. If SMEs are overwhelmed by high tax burdens, not only will the tax revenue be completely cut off, but more jobs and employment opportunities will be lost.

He Junming, vice chairman of the All-China Federation of Industry and Commerce, said that in the face of the difficult situation of private enterprises under the economic downside risks, the government should play a macro-regulating role in taxation policies, increase fiscal and tax support, and introduce large-scale and comprehensive measures for tax reduction and reduction. The company "sends charcoal in the snow." At present, the more SMEs, the heavier the tax burden. The current tax system has not only played a role in fairness, but has intensified the unfairness, thus amplifying the tax burden.

Private entrepreneurs in Jiangsu, Shanghai, Shandong and other places suggested reducing taxes and fees from production and consumption to help enterprises get out of the current predicament and implement stable growth targets. The expansion of structural tax reductions to comprehensive tax reductions for production enterprises, including production links, circulation links, sales links, and business results, greatly reduces the burden of corporate taxes and fees, and stimulates production enthusiasm.

In addition, some private entrepreneurs in Shanghai, Jiangsu, Zhejiang, Heilongjiang and other places pointed out that private enterprises have always suffered a lot of unfair treatment, can not use production factors equally and participate in market competition fairly, and sometimes face abuse of discretion and phishing law enforcement. . The government and the enterprise were originally "fish-water relations," and some places became "boiled fish." In addition, in terms of the credibility of the government, the phenomenon of “new officials ignoring old accounts” and inaction has always existed. Under the current high-pressure anti-corruption background, the government’s style of “doing no for the official” is serious. “The door is good, the face looks good, but it does not work.”

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