Report of the State Council on the work of reducing taxes and fees
Source: Ministry of Finance Release time: 2019-12-26
---- Liu Kun, Minister of Finance , at the 15th meeting of the Standing Committee of the 13th National People's Congress on December 25, 2019
Standing Committee of the National People's Congress:
Entrusted by the State Council, I report to the Standing Committee of the National People's Congress on tax and fee reductions in 2019.
I. Implementation of various tax and fee reduction policies and measures in 2019
Implementing larger-scale tax and fee reductions is a major decision made by the Party Central Committee and the State Council. General Secretary Xi Jinping emphasized that macro policies should strengthen counter-cyclical adjustments, active fiscal policies should be strengthened to improve efficiency, and tax and fee reduction policies and measures should take root to allow enterprises to enter the battlefield lightly. Premier Li Keqiang pointed out that cutting taxes and fees directly against the pain points and difficulties of current market players is a fair and efficient policy. In accordance with the decision-making and deployment of the Party Central Committee and the State Council, this year's policy of reducing taxes and fees is the largest and unprecedented in history.
(1) Carefully study the plan to ensure the timely introduction of tax and fee reduction policies.
This year's "Government Work Report" clearly requires that the burden of corporate taxes and social security contributions be reduced by nearly 2 trillion yuan throughout the year. The policy of inclusive tax reduction for small and micro enterprises and special additional deductions for personal income tax will be implemented from January 1; measures to deepen value-added tax reform will be implemented from April 1; reduction of social insurance rates will be implemented from May 1; cleanup Measures to regulate administrative fees and government funds will be implemented from July 1.
The first is to deepen the reform of value-added tax. According to the executive meeting of the State Council, the value-added tax rate of 16% in the manufacturing and other industries was reduced to 13%, and the value-added tax rate of 10% in the transportation and construction industries was reduced to 9%. The export tax rebate for some goods and services was adjusted accordingly Rates, deduction rates applicable to purchased agricultural products, etc .; further expand the scope of input tax deductions, include passenger transport services, and change the input tax paid by taxpayers to obtain real property from a two-year deduction to a one-time full deduction. Deductible; for taxpayers whose main business is postal, telecommunications, modern services, and daily life services, 10% of the input tax amount is deducted from the taxable amount (from October 1st, the daily life service industry is further deducted To 15%).
The second is to implement inclusive tax reduction for small and micro enterprises. In accordance with the deployment of the State Council executive meeting, a number of new small and micro enterprises inclusive tax reduction measures were introduced. For small-scale taxpayers, increase the threshold for value-added tax from monthly sales of 30,000 yuan to 100,000 yuan; greatly relax the standards of small and meager enterprises that can enjoy corporate income tax benefits, and increase the incentives for income taxes; The people ’s government of the municipality directly under the Central Government shall reduce the “six taxes and two fees” (ie, resource tax, urban maintenance and construction tax, real estate tax, urban land use tax, stamp tax) within 50% of the amount of VAT for small-scale value-added taxpayers according to the actual situation in the region. , Farmland occupation tax and education surcharge, local education surcharge); expand the scope of preferential policies for investment in start-up science and technology enterprises.
The third is to implement special additional deductions for personal income tax. On August 31, 2018, the fifth session of the thirteenth session of the Standing Committee of the National People's Congress passed the newly revised "Personal Income Tax Law of the People's Republic of China". Article 6 of the new Personal Income Tax Law provides for children's education, continuing education, critical illness medical treatment, There are 6 specific additional deduction policies for housing loan interest, housing rent, and pensions. On this basis, the State Council has issued the "Interim Measures for Special Additional Deductions for Individual Income Taxes", and officially implemented six special additional deduction policies from January 1 this year.
The fourth is to reduce social insurance rates. After deliberation and approval by the State Council executive meeting, the General Office of the State Council issued and issued the "Comprehensive Plan for Reducing Social Insurance Rates" (Guobanfa  No. 13), which clearly reduced the proportion of basic pension insurance units for urban employees. The production in various provinces, autonomous regions, municipalities and Xinjiang provinces Construction Corps (hereinafter collectively referred to as the province) pension contribution units higher than 16%, can be reduced to 16%; continue to gradually reduce the unemployment insurance, industrial injury insurance premium rates; adjust the social insurance payment base policy, all provinces employed full-caliber urban units The average salary of personnel determines the upper and lower limits of the individual payment base of social insurance. Individual industrial and commercial households and flexible employees can voluntarily choose the payment base between 60% and 300% of the average salary of employed persons in urban units in the province.
The fifth is to clean up and regulate administrative fees and government funds. In accordance with the arrangement of the State Council executive meeting, policies and measures were introduced to further clean up and regulate administrative and institutional fees and government funds, clearly reduce and exempt real estate registration fees, reduce cultural construction costs, and expand the scope of reducing patent application fees and annual fees. Charge standards for radio frequency occupation such as private passports, registration of some trademarks, and occupation of radio frequency by electric power, car networking, etc .; reduce the national standard for major water conservancy construction funds and airline civil aviation development funds by half; set up careers for pilot enterprises that integrate production and education Eligible investments in education are deducted by 30% of the investment amount from the education surcharge and local education surcharge payable in that year.
In addition, the Development and Reform Commission, the Ministry of Civil Affairs, the Ministry of Industry and Information Technology, the Ministry of Transport, the General Administration of Market Supervision, the Banking Regulatory Commission and other departments have also formulated measures to reduce the costs of energy use, logistics, telecommunications and other enterprises, and further reduce the general industrial and commercial electricity prices and telecommunications Fees, promote the reduction of tolls for roads, railways and ports, clean up and regulate the charges for banks and intermediary services, and effectively reduce the burden on enterprises and society.
(2) Carefully organize and implement to ensure that the tax and fee reduction policies take root.
The first is to strengthen organizational leadership and improve working mechanisms. The Ministry of Finance, the State Administration of Taxation, the Ministry of Human Resources and Social Security, and other departments have set up special classes for tax reduction and fee reduction to coordinate and coordinate the various tasks of tax reduction and fee reduction, focusing on program formulation, publicity, supervision and inspection, budget guarantee, and comprehensive coordination. Refine work tasks, clarify timetables and roadmaps, strictly benchmark and compare tables, and ensure that all work progresses steadily. Guide and urge all provinces, autonomous regions, and municipalities directly under the central government to strengthen the leadership and work force of tax reduction and fee reduction organizations, establish and improve working mechanisms, consolidate work responsibilities, and form joint efforts.
The second is to conduct in-depth research and strengthen policy evaluation. Relevant departments in various regions actively carry out research on tax reduction and fee reduction, understand the implementation of the policy, listen to the evaluations and opinions of enterprises and the public on the implementation of the tax reduction and fee reduction policy, follow up and evaluate in a timely manner, strengthen the analysis of policy effects, and address the policy implementation process. Emerging new situations and problems, in-depth analysis of the causes, and timely research and solution. Carry out in-depth tax and fee reduction accounting calculations and create a “hard bill, iron account book”.
The third is to strengthen the interpretation of policies to ensure the effectiveness of publicity. Relevant departments in various regions carried out multi-channel and wide-ranging tax and fee reduction publicity and interpretation through press conferences, government affairs websites, WeChat Weibo, mobile clients, tax service hotlines and other forms and multiple platforms. Proactively explain policies, interpret data well, respond to social concerns in a timely manner, and actively create a favorable public opinion environment. Organize multiple rounds of special counselling and training on tax reduction and fee reduction policies to help taxpayers and payers make full use of the tax reduction and fee reduction policies to enhance the sense of gain for taxpayers and payers.
The fourth is to optimize tax payment services and simplify tax procedures. In accordance with the requirements for deepening the reform of “decentralization and management services”, the tax authorities promptly introduced new measures to facilitate private tax payment, and introduced specific taxation policies for different types of small and micro enterprises, including general tax reduction, deepened value-added tax reform, and reduction of social insurance rates. Service measures. Cancel 60 tax-related certificates, improve and improve the business functions of the electronic tax bureau, and allow taxpayers and payers to "run the Internet and run less."
Fifth, strengthen supervision and inspection to ensure effective landing. Relevant departments in various regions focused on the effect of the tax reduction and fee reduction policy, continued to strengthen supervision and inspection, seriously investigated and dealt with inaction, slow action, and disorderly action, and resolutely solved the "medium obstruction" and "last mile", and worked to reduce or reduce Those who change tricks and charges to offset the effects of tax reduction and fee reduction will find that they will investigate and deal with them together, and will never tolerate them, so as to ensure that enterprises can actually enjoy the policy bonus of tax reduction and fee reduction.
(3) Strengthen budget management of fiscal revenue and expenditure, and support the implementation of tax and fee reduction policies.
The first is to increase local transfer payments. In order to support the stable operation of local finances, the central government has arranged 7.54 trillion yuan in local transfer payments this year, an increase of 9% over the previous year. The intensity is the largest in recent years. At the same time, when allocating balanced transfer payments and the basic financial resources guarantee mechanism at the county level, they will lean toward areas with financial difficulties at the grassroots level and areas affected by tax and fee reductions to strengthen their financial security capabilities. At the same time, the provincial government's main responsibilities should be implemented, and the bottom line of "three guarantees" (guaranteeing wages, guaranteeing operation, and protecting people's livelihood) at the grassroots level should be earnestly secured.
The second is to guide local multi-channel financing to make up for reduced income. At the same time as the central government strengthens transfer payments to local governments, it guides local financial departments to take into account local realities to study and coordinate the adoption of budget stabilization funds, increase the proportion of state capital operating budgets into general public budgets, revitalize existing funds, and state-owned resource assets. Raise funds in a way that alleviates the impact of tax and fee reductions on fiscal revenue reduction, and strive to achieve a balanced budget.
The third is to urge local governments to reduce general expenditures. Require all regions to firmly establish the idea of a tight schedule, and on the basis of strictly implementing the 5% reduction of general expenditures specified in the "Government Work Report", further increase the reduction efforts and strive to reach 10% or more. The saved funds are preferred Arrangement will be used to implement the "three guarantees" expenditure, support the key areas such as the three major battles. At the same time, the budget implementation constraints will be hardened, and budget adjustments will be strictly controlled.
The fourth is to study and implement the reform and promotion plan of the central and local income division. The State Council issued and issued the "Promotional Plan for the Reform of the Central and Local Revenue Division after the Implementation of Large-scale Tax and Fee Reductions" (Guo Fa  No. 21), which clearly maintained the "Five-Five-Year Sharing" ratio of value-added tax and stabilized local expectations; Adjust and improve the sharing mechanism of value-added tax rebates, make the sharing mechanism more fair and reasonable; move the collection of consumption tax back and steadily delineate the localities, and strengthen local fiscal security capabilities.
Fifth, increase central adjustments and subsidies for basic endowment insurance funds for enterprise employees. In order to balance the burden of the basic old-age insurance funds for employees of enterprises between regions, the central government will further increase the transfer rate in 2019, increasing the fund transfer ratio to 3.5%, and the scale of fund transfers for the year will exceed 630 billion yuan. There are 22 central and western regions and old industries. The base provinces benefited more than 150 billion yuan. At the same time, the basic endowment insurance fund subsidy for enterprise employees was increased. This year, the central government budget allocated 528.5 billion yuan in subsidies, a year-on-year increase of 9.4%.
Second, the main results of tax and fee reductions
In accordance with the decision-making arrangements of the Party Central Committee and the State Council, and with the concerted efforts of all relevant parties, various tax and fee reduction measures are currently being implemented effectively, and the effects are gradually showing.
(1) Effectively reduce the cost burden of enterprises. From January to October, the country realized tax cuts and fees of 1968.894 billion yuan, of which tax reduction was 1,647.6326 billion yuan, and social insurance premiums were reduced by 321.568 billion yuan. The annual tax and fee reduction will exceed 2 trillion yuan, accounting for more than 2% of GDP, which is significantly higher than that of other countries in the world. After deepening the reform of value-added tax, the high-level value-added tax rate has dropped from 16% to 13%, which is in the middle-low level among G20 countries, which is lower than some developed countries and emerging market countries.
(2) Preliminary realization of the "three guarantees" requirement. Since the implementation of the policy of deepening the value-added tax reform on April 1, we have firmly grasped the requirements of the "three guarantees". First, ensure that the tax burden of major industries such as manufacturing is significantly reduced. From April to October, the value-added tax reduction for manufacturing and wholesale industries was 459.883 billion yuan, a reduction of 25.7%. The second is to ensure that the tax burden on industries such as construction and transportation is reduced. From April to October, the construction industry reduced taxes by 18.919 billion yuan, a reduction of 6.2%; the transportation industry reduced taxes by 3.563 billion yuan, a reduction of 7.5%. The third is to ensure that the tax burden of other industries is reduced or not increased. From April to October, the tax reduction of modern service industry and living service industry was 32.196 billion yuan and 13.49 billion yuan, respectively, with tax reductions of 12.3% and 6.6%. With the increase of the deduction ratio of living service industry on October 1, the The implementation of policies such as the increase of 10% to 15% continued to increase the scale of tax reduction for the living service industry.
(3) Focus on supporting private and small and micro enterprises. Insist on both inclusive tax reduction and structural tax reduction, with a focus on reducing the tax burden on small and micro enterprises. Since the implementation of the inclusive tax reduction policy for small and micro enterprises on January 1, as of the end of October, the tax reduction for small and micro enterprises reached 186.089 billion yuan. After the standard was relaxed, the number of taxpayers who actually enjoyed corporate income tax reductions reached 4.689 million. Small-scale taxpayers added 4.0264 million households. Private enterprises are the main beneficiaries of the tax reduction policy. From January to October, the total tax reduction of various policies of private enterprises was 105.118 billion yuan, accounting for 63.8% of the total tax reduction.
(4) Effectively promote enterprises to increase investment in research and development. Accelerate the implementation of the policy of deducting 75% of R & D expenses before taxes, reducing taxes by 87.796 billion yuan, and implementing other policies to reduce taxes and fees, and promote enterprises to use the reduced costs for reinvestment in research and development, technological transformation, and so on. From January to October, under the situation of overall investment decline, investment in high-tech industries increased by 14.2% year-on-year, an increase of 1.2 percentage points from the previous three quarters, and 9 percentage points higher than total investment.
(5) Obviously increase residents' income and consumption capacity. From January to October, the special additional tax deduction policy for personal income tax was reduced by 52.194 billion yuan. In addition to the increase in basic income tax deduction standards and the optimization of the tax rate structure on October 1, last year, the total tax reduction was 448.084 billion yuan; personal income tax The taxpayer's per capita tax reduction was 1,786 yuan, which directly increased residents' income and enhanced consumption capacity.
Judging from the current situation reflected in various aspects, the implementation of tax reduction and fee reduction has been good, and the general public and the public have a high degree of satisfaction and satisfaction. It is generally reflected that the tax reduction and fee reduction policy implemented this year has exceeded expectations and is the most direct and effective. The most fair measures for benefiting enterprises. According to the calculation of the taxation department, tax and fee reductions contributed to a 0.8 percentage point increase in GDP, a 0.5 percentage point increase in fixed asset investment, and a 1.1 percentage point increase in total retail sales of consumer goods. The current economic operation is in a reasonable range, which continues the overall stable, stable and progressive development trend, and the tax and fee reduction policies have played an important role.
While affirming the effectiveness of tax and fee reduction, we must also see that there are still some difficulties and problems in the implementation of the policy. First, there is greater pressure on fiscal revenue. From January to October, due to higher-than-expected tax and fee reductions, the general public budget revenue of the country increased by 3.8%, of which tax revenue only increased by 0.4%. Central and local fiscal revenues are under great pressure, and it is difficult to complete the annual revenue budget. In addition, the pressure on the balance of income and expenditure of social insurance funds in some provinces is also increasing, and current budgets and deficits are in deficit. Secondly, the burden reduction of a few enterprises is not obvious. Judging from the implementation of the value-added tax reform, the tax burden of all industries has declined, but the transmission mechanism of tax reduction and fee reduction is not smooth. Individual companies in the "sandwich layer" of the industrial chain enjoy relatively limited policy dividends. A small number of companies have experienced a small increase in taxes due to inconsistent tax rate reductions at both ends of the purchase and sale and incomplete management. Third, the problems of arbitrary charges, fines and apportionment involving enterprises cannot be ignored. Some companies report that the problem of random charging by industry associations and Red Top intermediaries still exists. In the case of a large reduction in fiscal revenue, non-tax revenue, especially fined and confiscated income, has increased significantly in some localities, and it is necessary to prevent arbitrary fines and apportionment.
Third, consideration of tax and fee reduction work in the next step
In view of the difficulties and problems in tax and fee reduction work, the finance and taxation department will take Xi Jinping's new era of socialist ideas with Chinese characteristics as the guide, and conscientiously implement the 19th National Congress of the CPC and the 2nd, 3rd, 4th Plenary Sessions of the 19th CPC Central Committee and the Central Committee The spirit of the Economic Work Conference, adhere to the problem-oriented, continue to implement the various tax and fee reduction policies on the basis of ensuring sustainable financial operation, and promote the continued effect of tax and fee reduction policies.
(1) Resolutely implement the policy of reducing taxes and fees. We will implement the tax reduction and fee reduction arrangements of the Party Central Committee and the State Council in good faith to ensure that enterprises and the people have a real sense of gain. Firmly grasp the requirements of the "three guarantees", strengthen departmental coordination and cooperation, increase local guidance and supervision, continue to pay close attention to changes in the tax burden of various industries, follow up on effect monitoring and analysis and judgment, and organize a summary and evaluation of the effects of policy implementation . Further increase publicity and policy interpretation, increase the awareness of taxpayer and payer policies, and help enterprises make the most of their policies. Urge the local government to resolutely clean up and regulate the fees of enterprises involved, seriously investigate and deal with problems such as the failure to implement policies, increase the burden on enterprises, and harm the interests of the people, and ensure that measures are put in place.
(2) Effectively strengthen fiscal budget management. Continue to pay close attention to the implementation of budgets at all levels and guide and urge local governments to increase revenue and reduce expenditure to support tax and fee reductions. Strengthen fiscal revenue budget management, carefully study and judge the fiscal revenue situation, analyze in depth the impact of tax and fee reduction policies, and where appropriate, organize state-owned financial institutions and state-owned enterprises to turn in profits in accordance with laws and regulations in an orderly manner, and increase the vitality of state-owned resource assets . From the current point of view, it is expected that local fiscal revenue may have a large short-term revenue this year; the central fiscal revenue can basically complete the budget. If there is a small amount of short-term revenue, the changes in expenditures will be balanced by saving non-emergency expenditures.
(3) Adjust and optimize the structure of fiscal expenditure. We should firmly establish the idea of a tight life and strictly reduce general expenditures. Implement the provincial government's main responsibilities, increase financial sinking efforts, do a good job of grass-roots "three guarantees" work, and focus on helping areas where the "three guarantees" are difficult and the impact of tax and fee reduction is high. The implementation of the reform plan for the division of revenue between the central and local governments after a larger scale of tax and fee reductions was implemented to ensure that the adjustment and improvement of the mechanism for sharing VAT rebate and tax rebates was put in place, and the financial pressure on some areas, especially the grassroots, was effectively reduced.
Chairman, deputy chairmen, secretary general, and members. Implementing tax and fee reductions is an important measure to deepen structural reforms on the supply side, and plays an important role in reducing the burden on enterprises, stimulating the vitality of micro-subjects, and promoting economic growth. We must unite more closely around the Party Central Committee with Comrade Xi Jinping as the core, strengthen the "four consciousnesses", strengthen the "four self-confidences", achieve "two safeguards", conscientiously implement the decision-making arrangements of the Party Central Committee and the State Council, and The deliberation opinions of the Standing Committee of the National People's Congress have done a good job in reducing taxes and fees, in order to adhere to and improve the socialist system with Chinese characteristics, promote the modernization of the national governance system and governance capabilities, achieve the "two hundred years" goal, and achieve China. Strive hard for the Chinese dream of the great national rejuvenation!