Further support power lithium battery recycling, promote circular economy; Further support battery industry to develop circular economy and promote comprehensive and efficient utilization of resources; Improve the battery consumption tax collection or reduction policy. Zhang Tianren, a deputy to the National People's Congress and chairman of Tieneng Group, said he has submitted four proposals and 22 suggestions during this year's two sessions, including circular economy, the enactment of the Personal Bankruptcy Law and the Social Credit Law, encouraging private companies to participate in the new system, accelerating the construction of industrial cooperation zones in the Yangtze River Delta, and strengthening the protection of intellectual property rights for small, medium-sized and micro companies.

Zhang Tianren cited data from China's automotive Technology Research center that the cumulative retired power lithium batteries in 2020 will exceed 200,000 tons (about 25GWh), and the number will rise exponentially in the next few years. It is expected that the cumulative retired amount will be about 780,000 tons (about 116GWh) by 2025.

Ministry of Industry and Information Technology previously published the "new energy vehicle comprehensive utilization of waste power battery industry standard conditions", that is, the industry is commonly known as the white list, at present, a total of two batches of 27 companies into the white list.

However, Zhang Tianren's investigation found that standardized companies entering the white list of recycling and disposal face three major challenges in the process of business development: the first is unable to receive the old batteries, the second is unable to earn back the cost of money, and the third is unable to get the input ticket. As waste batteries are in the hands of individuals, recycling companies cannot obtain the corresponding VAT invoice when they are purchased, and cannot deduct VAT when they are sold to recycling companies, resulting in heavy tax burden for recycling companies. Irregular recycling companies sold batteries to small workshops and refineries through the way of ticket trading, driving up the price of waste batteries, which further weakened the competitiveness of regular companies, and the situation emerged that the regular army could not beat the guerrillas.

Zhang Tianren suggested that the entry threshold of recycling companies should be strict, and the white list companies should be supported to become bigger and stronger. In view of the lack of receipts for standardized recycling companies, it is suggested to give tax credit. The specific tax credit method is to give VAT deduction of 8% on the sales of terminal products, so as to relieve the processing cost pressure caused by the procurement of non-invoice batteries by compliance companies. It is suggested to provide policy subsidies to compliant lithium iron phosphate recycling companies. In view of the problem of upside down treatment cost of lithium iron phosphate batteries, recycling and disposal subsidies or tax incentives can be given at the rate of 1500 yuan/ton to 2000 yuan/ton, so as to improve the enthusiasm of disposal companies to deal with lithium iron phosphate batteries.

About the battery, 70% of the composition of the battery is lead, which has very high recycling value, recycling and reuse rate in our country has reached more than 90%. However, the problems of recycling and recycling in the field of lithium-powered lithium batteries also exist in the field of batteries.

Zhang Tianren suggested that the recycling link unified tax standards. Taking into account the actual situation that the business entity of the recycling link cannot obtain the input ticket, it is suggested that the VAT tax standard of the recycling company should be levied according to the standard of 3% for small-scale taxpayers. In order to reflect the fairness of the tax policy, the individual income tax withheld and paid by the self-employed from the sale of renewable resources will be assessed at a unified rate of 0.5%. At the same time, he suggested raising the rate of tax rebates in the regeneration sector and strengthening supervision to maintain fair order.

In another proposal, Mr. Zhang pointed out that battery companies have low profit margins, and the profit margin of their main business has been in the low range of 2% to 4% for years. It is suggested to improve the consumption tax collection policy, comply with the general trend of tax reduction and negative reduction, make full use of the consumption tax law according to the time window, no longer include the battery in the collection scope, or optimize and adjust the current consumption tax collection policy, can reduce the tax rate of 1 to 2 percentage points, can also meet the conditions of high performance sealed maintenance-free power lead-acid battery and traditional battery differential levy; It is suggested to set up consumption tax exemption policy, implement differentiated collection of battery consumption tax, and implement exemption policy for production companies that invest in social recovery; It is suggested that we adjust the proportion of consumption tax sharing, change the consumption tax from a central tax to a tax shared by the central and local governments, further increase the enthusiasm of local governments in collection and management, and better implement the extension of the producer responsibility system.