Rate Of Return
Buffett's senior apprentice$TENCENT(00700.HK)Rumors suggest that the financial industry (current tax rate 6%) and internet value-added services (such as in-game purchases, advertising) may become the next adjustment targets due to their high profit margins and light tax burden.
The financial industry's ROE reaches 15%-30%, but with few input deductions, the tax advantage is obvious.
The gaming industry may face the risk of tax rates moving from 6% towards the 32% of the liquor industry.
Transmission mechanism: If tax rates are raised, platform companies like Tencent will find it difficult to pass on costs, and profit margins will be squeezed.
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