Reducing Tax Burden on Enterprises Has Given Obvious Boost to Economy

The value added tax for manufacturing was lowered from 17 to 16 percent on Tuesday, while the rate for transportation, construction, basic telecommunication services and farm produce was reduced from 11 to 10 percent. The government also unified the standard for small-scale taxpayers and returned the withholdings of value added tax of some industries. Beijing News commented on Wednesday:

The tax cuts have generated immediate effects. The price of gasoline and diesel dropped by 75 yuan ($12) per ton and 65 yuan per ton respectively, and the prices of some automobiles dropped by tens of thousands of yuan.

The tax cuts will amount to 400 billion yuan ($64 billion) this year. This will not only directly benefit enterprises, it will also have a chain reaction that will boost consumption growth.

Reducing the tax burden on enterprises is an important goal of the government this year, as it targets a crucial problem hindering the development of enterprises.

It should be regarded as part of the supply-side structural reform to boost production and drive up consumption's share in the economy.

Supply-side structural reforms have harvested obvious effects. Data from the National Bureau of Statistics show that the total retail sales of consumer goods hit 36.6 trillion yuan last year, up 10.2 percent from 2016. This is the 14th year that it has grown at a double-digit speed.

Consumption plays a fundamental role in driving economic growth. The robust growth of consumption will promote the restructuring of the national economy, and boost the development of the service sectors. Echemi Promotion

Chemical price increase letter keeps coming

    Zhanxin

    At the United States Coatings Show for the first time in a brilliant debut of Zhanxin due to various reasons announced from May 1, Europe, the Middle East and Africa, all amino resin prices rise; the same time, powder coating resin products arrival prices. The price of indoor products/outdoor products/super weather-resistant products was increased by RMB 400/t. The price of ADDITOL products remained unchanged. Weekly Price on Echemi.com

    Gongga Snow

    Under the heavy pressure of the downstream application market, and domestic and provincial environmental supervision, the Sichuan Gongga Snow New Material Co., Ltd. recently issued a notice to raise the price of the Gonggaxue series of products. From May 1, the price of the "Gong Gong Xue" calcium carbonate series will be raised. The price of coarse products was raised by RMB 20/ton for 400 mesh, and RMB 30/ton for fine products.

    Clariant

    Clariant, a leading global manufacturer of specialty chemicals, recently announced that it will implement global price increases for most of its pigments and dyes, which will be 5% to 20%, due to sustained price increases of major raw materials, and in 2018 Effective on May 1 or according to the terms of the contract.

    The continuous rise in raw material prices will also drive price fluctuations in the downstream chemical market.

Chinese Acetone Market Fluctuated Up in Apr 2018

In April 2018, the Chinese acetone market fluctuated up. The overall trading was modest. Up to April 30, 2018, reference negotiation prices for acetone in Jiangsu and Zhejiang were around RMB 5,650/mt, up RMB 525/mt or 10.24% month on month. The average price was RMB 5,510/mt, increasing RMB 240/mt or 4.55% month on month. Echemi Mall

In H1 April, propylene prices moved up. Few acetone producers raised prices. Chinese acetone producers increased prices by RMB 300/mt. Holders in the Chinese market were unwilling to sell goods at low prices. Mainstream prices inched up. In H2 April, the Chinese acetone market prices became stable. Phenolic ketone units at Sinopec Beijing Yanshan Company were shut and the phenol unit at Formosa Industries (Ningbo) continue to be shut. The phenolic ketone unit at Lihuayi was shut for 3 days. The supply in the Chinese market declined. The inventory at ports was less than 20kt. Producers were bullish about the market while the demand was tepid. The overall trading was weak.