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Tax cuts and fee reductions raise confidence in China's real economy
source:China News Network|release time:2020-05-19

The executive meeting of the State Council held on February 8 to "gather together" to clear the fees, which sounded the "charge" of the State Council’s greater efforts to reduce the burden of enterprises in the new year-resolutely cancel the unreasonable charges of public institutions, and resolutely prevent intermediaries from using the government. Affecting illegal fees; industry associations and chambers of commerce must not force companies to join or illegal fees; we must pay close attention to the establishment of a fee catalog list system, and effectively reduce the discretionary power of fees related to enterprises...

The economic development of a country depends on the vigorous market vitality, and the main body of the market vitality is the enterprise. Taxes have been reduced, fees have been reduced, and the development environment has improved, so that the real economy can develop with confidence and the economy can have vitality.

Looking back at the beginning of the "Thirteenth Five-Year Plan", behind a series of tax and fee reduction policies, the Party Central Committee and the State Council precisely strengthened the momentum of economic development by doing a good job of reducing the country's "money bag" in exchange for the addition of transformation and upgrading of enterprises. These tangible measures are even more relevant to each of you and me.

Statistics from the Ministry of Finance show that the national general public budget revenue grew by 4.5% in 2016, which was lower than the 5.8% growth rate in 2015, which was the lowest growth rate of my country’s fiscal revenue since 1988. Among them, the policy-driven reduction of income and the clearing of the scope of exemption for fees related to enterprises are a major factor in the reduction of income.

The person in charge of the Taxation Department of the Ministry of Finance introduced that on May 1, 2016, the pilot reform of camp reform was fully launched. The pilot covered the last four major industries of the construction industry, real estate industry, financial industry and life service industry. All enterprises included in the new real estate VAT is also included in the deduction range. At present, the pilot operation is running smoothly, and the development trend is improving month by month. The total tax reduction for the whole year exceeds 500 billion yuan.

Implement deferred tax incentives for eligible equity incentives and technology shareholdings, relax the scope of the R&D cost plus deduction policy, revise the high-tech enterprise recognition measures, and increase support for technology-based enterprises, especially small and medium-sized enterprises. Through a series of preferential tax policies to support "public entrepreneurship and innovation", and vigorously implement universal fee reduction measures to reasonably reduce the burden on enterprises.

The person in charge of the Taxation Department of the Ministry of Finance introduced that in 2016, the central government canceled, suspended, and integrated 7 government funds including the new vegetable field development and construction fund; the scope of the education fee surcharge, local education surcharge, and water conservancy construction fund will be exempted from the current The monthly sales or turnover not exceeding 30,000 yuan was expanded to 100,000 yuan; the 18 administrative fees that were exempted only for small and micro enterprises were expanded to all enterprises and individuals. These measures reduce the burden of enterprises and individuals by about 27 billion yuan every year.

2017 is a year of deepening supply-side structural reforms. Facing the call for enterprises to further reduce the burden, Minister of Finance Xiao Jie made it clear at the National Finance Work Conference that he will step up the implementation of tax and fee reduction policies in 2017, and appropriately expand the scale of expenditure. In addition to continuing to implement and improve the pilot reform policy, it will also "study and implement new tax reduction measures." The latest deployment of the executive meeting of the State Council means that the "clearing fees" in the new year will be further linked with the "tax reduction" to effectively ensure that enterprises can achieve the actual results of reducing burdens.

Reducing taxes and fees for market players is an important part of deepening supply-side structural reforms. Following the comprehensive launch of the pilot reform in 2016, the vigorous clean-up and regulation of fees related to enterprises in 2017 will undoubtedly become the "focus" of the new round of policies. The great efforts of the state to reduce taxes and fees will undoubtedly help boost corporate confidence and stabilize development expectations. If the expectation is stable, then the market will be stable and the economy will be stable.

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