Opening the government work report submitted to the second session of the 13th National Peoples Congress for consideration on the 5th day, one figure is particularly striking: reducing the burden of corporate tax and social security contributions by nearly 2 trillion yuan throughout the year.
What areas will the vigorous tax reduction and fee reduction focus on? What effect will it produce? Xinhua reporters interviewed authoritative experts and delegates to elaborate on the signals of these key initiatives.
Signal 1: Large-scale tax cuts directly hit the pain points and difficulties of the real economy
Implement larger tax cuts. Seeing the statement in the report, Gao Peiyong, member of the CPPCC National Committee and Vice President of the Chinese Academy of Social Sciences, said that the list of nearly 2 trillion yuan of tax cuts and fee reductions is the embodiment of the positive fiscal policy and the goal of this years inclusive tax cuts and structural tax reductions.
Looking closely at the big meal of tax reduction and fee reduction of nearly 2 trillion yuan, the VAT reform is undoubtedly one of the main dishes, and the real economy is the main service object of this main dish.
The current 16% tax rate of manufacturing industry and other industries is reduced to 13%; the current 10% tax rate of transportation and construction industry is reduced to 9%; the tax rate of the first 6% is kept unchanged, but the tax burden of all industries is only reduced but not increased by taking supporting measures such as increasing tax credit for production and life services. This year, Chinas VAT system will be further optimized.
Facing the pressure of declining profits of industrial enterprises, lowering the VAT tax rate of manufacturing enterprises will help to increase the vitality of enterprises and help Chinas manufacturing industry become bigger and stronger. Xu Guanju, deputy to the National Peoples Congress and chairman of Chuanhua Group, said.
To further reduce the burden on the real economy is undoubtedly one of the hotspots of this years NPC and CPPCC sessions. Many delegates said that this years larger tax cuts directly hit the pain points and difficulties of the current real economy, highlighting fairness and efficiency. While reducing the burden on the real economy, it also provides a boost for the structural reform on the supply side and promotes the high-quality development of the economy.
Signal 2: Inclusive tax cuts for small and medium-sized enterprises
Small and micro enterprises are the new force of development, the main channel of employment and the important source of innovation. According to the government work report, this year small and micro enterprises will usher in the inclusive tax reduction policy.
The starting point of VAT for small-scale taxpayers has been raised from 30,000 yuan to 100,000 yuan in monthly sales; the standards for small and small-scale enterprises that can enjoy preferential income tax have been greatly relaxed; and the preferential income tax has been strengthened... This year, just after New Years Day, small and micro enterprises will usher in a new tax reduction gift package, which is expected to reduce the burden of small and micro enterprises by about 200 billion yuan every year.
While emphasizing the implementation of the inclusive tax reduction policy for small and micro enterprises at the beginning of the year, this years government work report also highlights new measures to support the development of small and micro enterprises: the average broadband tariff of small and medium enterprises is reduced by 15%; the targeted reduction of small and medium-sized banks is strengthened; the loans of small and micro enterprises of large state-owned commercial banks should be increased by more than 30%.
There are a large number of small and micro enterprises in China. These measures will further reduce the burden of small and micro enterprises and stimulate market vitality on a larger scale. Li Xuhong, a professor at Beijing National Accounting Institute, said.
Signal 3: Significantly reduce the burden of social security contributions of enterprises, especially small and micro enterprises
Reducing the contribution rate of basic old-age insurance units for urban workers can be reduced to 16% everywhere, stabilizing the current collection mode, and continuing to implement the policy of reducing unemployment and industrial injury insurance premium rate at different stages. The hard measures highlighted in the government work report convey an important signal: significantly reducing the burden of corporate social security contributions.
Zhang Xuewu, deputy of the National Peoples Congress and chairman of Yanjin Puzi Food Co., Ltd., said that as a labor-intensive enterprise, the companys labor costs are heavy, and the need to reduce the social security premium rate is more urgent.
Reducing the social security premium rate is undoubtedly a good thing for enterprises, which is conducive to enterpriseslight loading, and further enhance their sense of acquisition. Zhu Jianmin, member of the CPPCC National Committee and chairman of the board of directors of Oak Holding Group, said.
In addition, this year, we will accelerate the overall reform of the old-age insurance at the provincial level, continue to increase the central allocation ratio of the basic old-age insurance fund for employees of enterprises, and transfer part of the state-owned capital to enrich the social security fund. Relevant officials of the Ministry of Finance said that the reform would help to balance the burden of endowment insurance among regions and safeguard the rights and interests of the majority of the insured.
Signal 4: Carry out the implementation to ensure the implementation of tax reduction and fee reduction in place
Implementing greater tax cuts and fee cuts is particularly critical for enterprises to have a personal experience.
Grasp the implementation of the inclusive tax reduction policy for small and micro Enterprises promulgated at the beginning of this year, This year we must substantially reduce the social security payment burden of enterprises, especially small and micro enterprises, We must make market participants, especially small and micro enterprises, have a clear sense of tax reduction and fee reduction, and resolutely fulfill their commitments to enterprises and society... The sentences and commitments in the government work report show the determination to implement them.
Its a gift from spring, and only when these tax cuts and fee cuts come to the ground can they really work in the development of enterprises. Wang Tiao, deputy of the National Peoples Congress and chairman of the Bubugao Group, said.
In the context of the intensification of the contradiction between revenue and expenditure this year, the more vigorous tax reduction and fee reduction, in order to achieve real results, government departments need to take more hard measures.
No matter how difficult it is, it must be done well. Liu Shangxi, member of the CPPCC National Committee and President of the Chinese Academy of Financial Sciences, said that in order to support enterprises to reduce burdens, governments at all levels need to live a tight life. With the gradual fall of burden reduction measures, the subtraction of government revenue will ultimately exchange for the addition of enterprise benefits and the multiplication of market vitality.
The delegates believed that the list of nearly 2 trillion yuan of tax reduction and fee reduction is a new confidence for enterprises and markets and a new hope for promoting high-quality development. Chinas economic development will open up a broader space.