The rise of a great power: starting with military industry

Chapter 340 Tax Withholding
Destroyers are the most important warships in the navies of various countries and are regarded by Chinese military experts as a very important symbol of the ocean-going combat fleet.

Although the Chinese Navy had planned to build its first destroyer unit as early as March 1954, there were no destroyers available at that time.

直到1954年10月和1955年6月从苏联各购置两艘07型驱逐舰之后，才真正拥有驱逐舰，此时已经距离华夏海军成立有5年之久了。

However, China calls it the Type 07 destroyer, but people overseas do not think it is a destroyer but a frigate.

Because the tonnage of the Type 07 destroyer is too small, less than 3000 tons.

Internationally, ships with a normal tonnage below 3000 tons are called frigates, ships between 3000 tons and 7000 tons are called destroyers, and ships above 7000 tons are called cruisers.

Type 051 destroyer, a destroyer built by China itself, has a standard displacement of 3250 tons and a full load displacement of 3670 tons.

In 1967, the Type 051 destroyer was included in the "Third Five-Year Development Plan". The construction cost was 6000 million yuan, and the maintenance was more complicated. The cost of using various types of fuel and ammunition was comparable to the maintenance and use costs of 3 to 4 Type 053 frigates. This put great pressure on China at the time.

So much so that old veterans who came from the army have questioned that the existing naval aviation, torpedo boats, and missile boats are fully capable of coastal defense operations, and conventional submarines and naval aviation can cooperate to complete the task in the mid- and near-shore areas. What is the point of investing so much money to build a 3000-ton destroyer?
The previous Type 054 frigate cost 9000 million RMB, which made the old guys from the army furious. The Panshan Group even paid for part of the cost, and the Navy still had to contribute 9000 million RMB. How could this be tolerated?

Some old people even complained that the navy was really a prodigal son, as 9000 million RMB could have been used to purchase 60 Type 80 main battle tanks!

The army is stingy and reluctant to purchase Type 80 main battle tanks, and only purchases a few at a time.

The navy, on the other hand, has to pay 9000 million RMB for a frigate.

Now the Type 052 destroyer costs 20 billion RMB, and everyone is looking at the navy with murderous eyes.

The navy’s annual military expenditure may not even reach 20 billion RMB!

20亿人民币，陆军可以采购1334辆80式主战坦克，更是足以采购6667辆81式轻型坦克，或者2857辆81式中型坦克。

That is enough to greatly enhance the strength of the army's armored forces.

However, 20 billion RMB is only enough for the navy to build one Type 052 destroyer.

There was a lot of noise for several days, and the management held three meetings.

But the leaders also know that the navy does need advanced destroyers!

You have to know that the Soviet Union's Pacific Fleet and the United States' Pacific Fleet are both extremely powerful. Although China and the United States are in a honeymoon period, this aspect is not so urgent, but as the saying goes, if you don't think about the future, you will have immediate worries, so you have to consider more.

At this time, the Soviet Navy's Pacific Fleet had a total of 2 aircraft carriers, 9 cruisers, 13 destroyers, and 27 frigates, and its military appearance was quite strong.

Like the Minsk, which is also called an aircraft carrier, it has a full load displacement of 4.14 tons and is equipped with two twin-barreled 2mm main guns. It can launch 76 missiles at a time. It has 120 take-off and landing points on the angled deck and can carry about 7 Yak-12s and 38 Ka-series helicopters. Its maximum speed is 16 knots.

Now the Soviet Navy Pacific Fleet has set up a squadron in Cam Ranh Bay, Annan.

Besides, the US Pacific Fleet is even more powerful.

Under such circumstances, the Chinese Navy does need advanced warships to defend its maritime borders and protect coastal security.

But the problem is that China has no money and military spending is really limited.

In the past, when it came to warships, regardless of whether or not one had the money to buy them, even if one had the money to buy them, people were unwilling to sell advanced warships. Even during the honeymoon period between China and the United States, when China proposed to buy warships two years ago, people rejected the offer without hesitation, without even giving China a chance to negotiate, let alone make an offer.

China is now able to develop advanced warships, but the biggest problem is that it has no money!
If the Navy spends 20 billion RMB to build a destroyer, then the Navy will have to starve or even starve to death.

"In this way, your Panshan Group will pay for the construction first, and the navy will pay in 120 months over ten years," the old man suggested.

Two hundred million per year, the navy can still barely come up with that if they squeeze a little and save a little.

If you want advanced warships, you have to live a hard life.

Liu Tao couldn't help but smile bitterly. Sure enough, the previous opening should not have been made. Once the opening was made, there was a precedent.

This is the case with the Type 022 missile boat, the torpedo boat, the Type 054 frigate, and now the Type 052 destroyer.

"Leader, since you have spoken, we have to do it even if we have to. Just consider it as our support for the navy's construction." Liu Tao said helplessly.

20 billion RMB now and 10 billion RMB 20 years later are two different things.

The purchasing power of the two is vastly different.

Not to mention, even if the purchasing power is the same and there is no problem of currency depreciation, the difference is huge just in terms of bank interest.

The interest rate of this loan is over 20%!

"You little monkey, you never give up until you get the rabbit. So the funds needed to build ten Type 054 frigates, five Type 052 destroyers and thirty Type 022 missile boats will be deducted from the taxes you pay." The old man smiled.

The other leaders all laughed.

For them, this is just a transfer from the left hand to the right hand, and the wealth remains at home, in their own hands.

But this is different for domestic industry, it can greatly improve the level of domestic shipbuilding industry.

Liu Tao's heart moved. This is possible.

After all, the entire Panshan Group system has to pay a lot of taxes every year.

It will take about fifteen years to build so many warships. Without considering future currency depreciation and rising labor costs, the total cost will be around 70 billion RMB.

If all factors are taken into account, it would be approximately RMB 120 billion.

This is much better than the Navy actually using interest-free installments.

If the Navy were to make interest-free installments, it would be a huge loss.

On the contrary, this method of tax deduction is a good choice for Panshan Group.

"Thank you, leader. Thank you for your understanding!" Liu Tao said quickly.

This is indeed taken into consideration for Panshan Group.

"The country will not mistreat any meritorious person, nor will it mistreat any enterprise that works hard and dares to make contributions," the old man said with a smile.

To be honest, whether it is the Type 022 missile boat, torpedo boat, Type 054 frigate, or Type 052 destroyer, it is a huge surprise for the country.

Because the leaders know very well that if you just want to be taken advantage of and be slaughtered like a pig, no one will be willing to sell you some weapons.

This kind of weapon is the best if only China has it and can develop it itself.

The leaders are all well aware of the contributions made by Liu Tao.

It would be bad if it dampened their enthusiasm.

As for using taxes to deduct construction costs, this is exactly what everyone came up with after brainstorming.

Although Panshan Group was not supposed to pay taxes originally, it is now paying taxes in order to comply with the country's policy of "tax instead of profit".

(End of this chapter)