Among the investigated enterprises, Qichun Yaxin Wood Products Co., Ltd. is more obvious. The enterprise enjoyed a tax rebate of 5.33 million yuan in 2006, a year-on-year decrease of 23.86% and realized an export of 7.6 million U.S. dollars, down 32.38% from the same period of last year.
3, enterprises are facing reshuffle. The adjustment of tax policy will make the competition between enterprises more intense. Some enterprises will reduce the export and increase the domestic sales, and the competition in the domestic market will be more intense.
Due to the ability to bear the tax burden, not only profit reduction, but some SMEs will be unprofitable due to increased tax burden, or even loss. Under such circumstances, some enterprises will have to withdraw from the market and the whole wood products industry will face a new round of reshuffling.
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