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M&T Lawyers was interviewed by Accounting Messenger over the issue that Eco- Business tax burden increased

Since the implement of business tax to value-added tax policy in May 1 of this year, tax cuts become very significant in many industries. However, some Eco-Business afford more tax than before. The senior partner of M&T Law firm Shi Zhiqun was interviewed by Accounting Messenger on that issue. Mr. Shi believed that there are two main reasons for the above results. On one hand, in some region, the tax return process is relatively slow and the levy refund program were not enforced. On the other hand, environmental protection industry is not an industry and it is related to varieties of industries including modern service industry, social service industry, construction industry and so on.
 
Mr. Shi further explained through the example of environmental protection industry involved in the construction industry. He said that there are two kinds of phenomena that may occur in environmental protection enterprises after the business tax to value-added tax policy. Firstly, some Eco-Business need to put a higher price of construction for a variety reasons which will definitely make enterprises bear more tax. Secondly, some Eco-Business have not established a complete management mode yet, which leads to no deductions for invoices made.
 
Shi insists that it is common that environmental protection enterprises bear more tax burden during the progress of business to value-added tax policy. To solve this problem, environmental protection enterprises should cooperate with enterprises who is more standardized in management and can offer an input tax deductible invoice.