The year will exceed 2 trillion yuan! State Council report details implementation of tax and fee reduction policies
Source: Xinhua News Agency Time: 2019-12-26
As a "heavy-handed punch" of active fiscal policy and a "key move" to cope with the downward pressure on the economy, this year China introduced an unprecedented scale of tax and fee reduction policies.
How much taxes and fees will be reduced in 2019? Entrusted by the State Council, Minister of Finance Liu Kun made a report to the Standing Committee of the National People's Congress on the state's work on tax and fee reduction on the 25th.
How much is it reduced? The year will exceed 2 trillion yuan
"The annual tax and fee reduction will exceed 2 trillion yuan, accounting for more than 2% of GDP, which is significantly higher than other countries in the world." Liu Kun said that after deepening the VAT reform, China's high-end VAT tax rate has dropped from 16% To 13%, it is in the middle-low level among G20 countries, lower than some developed countries and emerging market countries.
Located in the workshop of Dali Silk (Zhejiang) Co., Ltd. in Shaoxing, each silk is woven into colorful silk fabrics by machines, and then processed into ties, scarves, bedding, etc., and sold to many countries in Europe and the United States. "This year's company's profits have achieved double-digit growth, of which the benefits brought by tax deductions account for about 20%." Chairman Lin Ping said.
Dali Silk is a microcosm of the millions of enterprises that have benefited from tax and fee reduction policies. This year, China implemented a larger tax and fee reduction policy. Liu Kun said that in the first 10 months, the country realized tax cuts and fees of 1968.894 billion yuan, of which tax cuts were 16,473.326 billion yuan, and social insurance premiums were reduced by 321.568 billion yuan.
A new tax law was implemented in January, and small and micro enterprises welcomed inclusive tax reductions. The VAT rate was lowered in April, the social security rate was lowered in May, and administrative and administrative fees and government funds were cleaned up in July ... this year Since then, a series of policies to reduce the burden on enterprises have continued to make efforts.
At the same time, we will strengthen policy evaluation, optimize taxation services, strengthen supervision and inspection, strengthen fiscal revenue and expenditure budget management, and study and implement central and local income division reform and promotion programs ... Support and supporting measures are frequently introduced to ensure that tax cuts and fees take root.
Liu Kun said: "At present, various tax and fee reduction measures have been implemented effectively, and the effects are gradually showing."
——Ensure that the tax burden of major industries such as manufacturing is significantly reduced. From April to October, the value-added tax reduction of manufacturing and wholesale industries was 459.883 billion yuan, a reduction of 25.7%;
——Ensure that the tax burden of the construction industry and the transportation industry 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%. ;
——Ensure that the tax burden of other industries will only be reduced or not increased. From April to October, the modern service industry and living service industry will reduce taxes by 32.196 billion yuan and 13.49 billion yuan, respectively, with tax reductions of 12.3% and 6.6%;
—— Focus on supporting private and small and micro enterprises. In the first 10 months, small and micro enterprises reduced taxes by 186.089 billion yuan; the total tax reduction of various policies of private enterprises was 105.118 billion yuan, accounting for 63.8% of the total tax reduction.
How effective? Lightweight business
It is estimated that taxes and fees in excess of 2 trillion yuan will be "reduced" throughout the year. What effect will they have on economic development?
"From the current situation reflected in various aspects, the implementation of tax reduction and fee reduction is good, and the sense of satisfaction and satisfaction of the majority of enterprises and the public is high. It is generally reflected that the tax reduction and fee reduction policy implemented this year has exceeded expectations and is the most direct and most The most effective and fair measures for benefiting enterprises. "Liu Kun said.
The report shows that tax and fee reduction policies have effectively promoted 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 various tax reduction and reduction policies to promote enterprises to reduce costs for reinvestment in research and development, technological transformation, and so on.
The survey and commissioned survey organized by the Budget and Work Committee of the Standing Committee of the National People's Congress this year showed that Jiangsu Dongfeng Yueda Kia, Heilongjiang Feihe Dairy, China National Heavy Industries, Xinjiang Jinko Energy, TBEA, Liaoning Brilliance BMW, Xinsong Robots and other companies have stated that The successive implementation of tax and fee reduction policies has brought tangible benefits to enterprises, which has effectively promoted enterprises to further increase investment in research and development, and promote technological transformation and industrial upgrading.
In addition, tax and fee reductions have significantly increased residents' income and spending power. The report shows that in the first 10 months of this year, the total personal income tax reduction was 448.084 billion yuan; the per capita tax reduction was 1786 yuan.
Bai Jingming, deputy director of the Chinese Academy of Finance Sciences, said that the reduced taxes and fees have better relieved the burden on enterprises and individuals, and promoted the healthy development of enterprises and economic transformation and upgrading. Highlights of some emerging industries and consumer sectors are inseparable from the help of tax and fee reductions.
According to the report, according to the calculation of the taxation department, tax cuts and fees cuts will increase GDP growth by 0.8 percentage points, fixed asset investment growth by 0.5 percentage points, and total social consumer goods retail sales by 1.1 percentage points.
How to move forward next year? Face the problem and continue to work hard
Although the effect of the tax and fee reduction policy is gradually showing, there are still some problems in the implementation process.
The report shows that due to the higher-than-expected tax and fee reductions, fiscal revenue is under pressure. "From the current point of view, it is expected that local fiscal revenues may experience large short-term revenues this year; the central fiscal revenues can basically complete the budget. If there are a small number of short-term revenues, the changes in expenditures will be balanced by saving non-emergency expenditures and other means. "Said Liu Kun.
Next, how should the government live a "tight life"? The report shows that we will continue to pay close attention to the implementation of budgets at all levels, guide and urge local governments to increase revenue, reduce expenditures, and support tax and fee reductions; strengthen fiscal revenue budget management and increase the vitality of state-owned resource assets. Adjust and optimize the structure of fiscal expenditures, and effectively reduce fiscal pressures in some areas, especially at the grassroots level.
On the other hand, a small number of enterprises are not significantly offloaded, and some companies in the "sandwich layer" of the industry chain enjoy relatively limited policy dividends. The problems of arbitrary charges, fines, and apportionment involving enterprises cannot be ignored. Some enterprises report that the problem of arbitrary charges by some industry associations still exists.
The report said that we must resolutely implement the policy of reducing taxes and fees. Strengthen local guidance and supervision, continue to pay close attention to changes in tax burdens in various industries, follow up on effect monitoring and analysis and judgment, and urge local governments to resolutely clean up and regulate enterprise-related charges to ensure that enterprises and the people have a real sense of gain.
In the opinion of Yang Zhiyong, deputy dean of the Academy of Economic Strategy of the Chinese Academy of Social Sciences, the effects of a series of tax and fee reduction policies introduced in recent years will continue to be released next year. Even if large-scale new policies are not introduced next year, the policy superimposed effect will allow existing policies to continue to exert their strength and continue to promote the economy towards high-quality development.
Bai Jingming said that tax and fee reductions will have an impact on fiscal revenue next year; at the same time, next year, we must ensure that a well-off society is fully built and the "Thirteenth Five-Year Plan" ends, and fiscal expenditure will remain rigid. Therefore, we must continue to optimize the structure of fiscal expenditures, strengthen budget performance management reforms, and effectively improve the efficiency of fiscal funds.