The 2019 government Work report said: Deepen value-added tax reform, reduce the current 16% tax rate in manufacturing and other industries to 13%, reduce the current 10% tax rate in transportation and construction and other industries to 9%, and ensure that the tax burden of major industries is significantly reduced; We will keep the first class tax rate of 6% unchanged, but by taking supporting measures such as increasing tax credits for production and household services, we will ensure that the tax burden of all industries will only be reduced and not increased, and continue to move toward promoting three and two tax brackets and simplifying the tax system. We will focus on reducing taxes and fees on a scale of over two trillion yuan, which will be fully implemented from April 1 this year. The impact of VAT reduction on the industry is more complex, and the change of tax rate will affect the price of products, but the benefits of different industries with different bargaining power will also be significantly different. Generally speaking, industries and enterprises with strong bargaining power can still maintain the high price of their products after the tax rate reduction, so as to share more tax reduction profits. In the long run, as long as the competition is sufficient, the high price of products after tax reduction will not be maintained, and the price will still return to the new equilibrium.

From the perspective of the plasticizer industry chain, first of all, after the Spring Festival, the overall operation of the market is relatively weak, after entering March, the market is still lack of active atmosphere, before and after the two sessions, environmental protection pressure makes local terminal enterprises to start work again limited, but also aggravate the decline in enterprise production enthusiasm, the demand for raw materials shrinks again to the plasticizer market operation situation, Enterprise destocking pressure does not decrease but increase, so although there is a major overhaul of the Qilu device, but octanol in the downstream DOP, DOTP factory resistance mentality is facing pressure to yield profits, and then into the downward adjustment cycle.

Therefore, under the situation of the lack of favorable support for the supply and demand performance of the industry chain itself, the influence of the policy dividend release is temporarily "shelved" for the industry. After April, with the formal implementation of the VAT reduction, butanoctyl alcohol production enterprises are expected to increase income, but plasticizer and terminal PVC soft products enterprises based on their own industry discourse power relative to the upstream is weak, cost transmission is often in a passive situation, so combined with the status quo of the industry, and then comprehensive production enterprise output, input tax, etc. It is expected that the favorable degree of VAT reduction for upstream enterprises is better than that of enterprises at the bottom of the industrial chain. However, with the continuous in-depth implementation of policies such as tax reduction and fee reduction and solving financing difficulties, the income and operation of plasticizer and terminal industries are expected to gradually improve.

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