Photovoltaic VAT tax rate will be reduced by 50%

The Ministry of Finance and other four departments recently issued a joint circular, starting from April 1 this year, adjusting the relevant directory of major technical equipment import tax policies for this year, and providing domestic companies with import tax policies for key components and raw materials needed for the production of listed equipment. Adjustment.

It is worth noting that many solar photovoltaic cell production equipment and key components have been added to the catalog. They are: solar grade single crystal furnace (feeding capacity ≥150KG), solar grade polycrystalline silicon ingot furnace (one feed capacity ≥800KG) , diffusion furnace (polycrystalline, single crystal, size: 156mm × 156mm), copper indium gallium selenide (CIGS) thin film solar photovoltaic cells selenization, heat treatment (substrate size of 0.6 × 1.2m; maximum temperature ≥ 500 degrees). In addition, the catalogue also adjusts the name and parts list of the full-automatic printing, drying, sintering and test sorting system (polycrystalline, single crystal, size: 156mm×156mm) for the production of crystalline silicon solar photovoltaic cells.

Analysts believe that import tax exemption will effectively ease the pressure on the current domestic photovoltaic manufacturers who are in the doldrums. In particular, they will be directly beneficial to downstream manufacturers such as photovoltaic panels and components.

It is also known that as an important part of the recent national plan for the revitalization of the photovoltaic industry, the value-added tax rate for photovoltaic power generation projects will be reduced by 50% from the current tax rate, which is in line with wind power projects.

Analysts pointed out that the current PV power generation VAT rate is about 17%, while wind power VAT is about 8.5%. Obviously, the direct benefit of tax cuts is a substantial increase in the investment rate of photovoltaic power plants. At present, the internal rate of return for photovoltaic power plant projects in the western region is generally above 10%. If the photovoltaic power generation value-added tax is equal to wind power, the equivalent on-grid electricity price of the photovoltaic power plant project is expected to increase by 0.08 yuan/degree on the basis of the current, and the annual power generation revenue of a 20 megawatt power plant will increase by 8%.