BEIJING, March 6, China News Agency (CNP) -- As expected by all circles, China has decided to implement a larger tax reduction and fee reduction in 2019. Beijing scholars believe that the new round of tax reduction and fee reduction has four characteristics.
Inclusive and structural coexistence
Inclusive, reflected in the current round of tax cuts will benefit all industries.
According to the governments work report, tax rates for manufacturing and other industries will be reduced from 16% to 13%, and those for transportation and construction will be reduced from 10% to 9%. In addition, the government will increase tax credits for production and living services to ensure that all industries only reduce tax burden but not increase.
Liu Shangxi, president of the Chinese Academy of Financial Sciences, believes that, compared with adjusting the tax base, the direct reduction of tax rate is more clear and easy to understand, easy to operate, can effectively enhance the sense of enterprise acquisition, and is also conducive to effectively guiding market expectations.
Structurality is reflected in the emphasis on tax reduction and fee burden.
For example, considering that the current small and micro enterprises are particularly affected by the economic downturn, and small and micro enterprises are indispensable to ensure employment stability and stimulate market vitality, this round of tax cuts and fees for small and micro enterprises to give special care. The report emphasizes that we should focus on reducing the tax burden of manufacturing and small and micro enterprises, and make sure that enterprises, especially small and micro enterprises, have a substantial reduction in the burden of social security contributions.
Information map. Li Lin photo
From Scale Upgrading to System Optimization
At present, there are many task lists for Chinas economic development: not only to withstand short-term downward pressure and maintain stable growth, but also to deepen reform, promote structural adjustment and achieve high-quality development. As Liu Yuanchun, Vice President of Renmin University of China, said, at this stage, China needs to use the spirit of reform to sort out and position macroeconomic policies in an all-round way to solve deep structural and institutional problems.
In this context, the report proposes to deepen the reform of VAT, continue to advance the direction of three-tier tax rate and two-tier tax system simplification.
According to Feng Qiaobin, a professor in the Department of Economics of the State Administration College, with the change of economic situation at home and abroad, Chinas tax reduction and fee reduction should also rise from 1.0 to 2.0, that is, not only to expand the scale, but also to pay more attention to the improvement and optimization of the tax system, with a view to creating a more fair, neutral and lower tax rate environment, so as to provide better development space for all kinds of market players. Officials clearly will deepen VAT reform, which is an important step in this direction.
Do what you can and do what you can
At present, the environment facing Chinas development is more severe and complex, with more and more risk challenges. In this case, the new round of tax reduction and fee reduction is not a single one, but a comprehensive consideration after the overall consideration. For example, the report clearly wants to reduce the proportion of urban workersbasic endowment insurance unit contributions, which can be reduced to 16% in all parts of the country. Feng Qiaobin said that this is 3 percentage points lower than the current standard, and it is expected to reduce the payment burden of hundreds of billion yuan (RMB, the same below) with considerable effort.
Information map. China News Agency reporter Wei Liangzhao
At the same time, the report proposes that we should continue to implement the policy of reducing unemployment and industrial injury insurance premiums at different stages, accelerate the overall reform of old-age insurance at the provincial level, and continue to increase the central allocation ratio of basic pension insurance funds for employees of enterprises. This is a rational choice based on the reality of social security in China. Feng Qiaobin said.
Tax Reduction, Fee Reduction and Savings for the People
It is estimated that China will reduce the burden of corporate tax and social security contributions by nearly 2 trillion yuan this year. Under the background of stable and changeable economic operation and worrying changes, the growth of national money bag is slowing down, but more and more places need to spend money. With such large-scale tax reduction and fee reduction, the pressure faced by governments at all levels should not be ignored.
How to decompress? Officials are preparing to live a tight day for themselves. The report on the work of the government made it clear that in order to support enterprises to reduce their burdens, the central government should open up resources and reduce expenditure. General expenditure should be reduced by more than 5%. The three public funds should be reduced by about 3%. Local governments should also vigorously optimize their expenditure structure and activate all kinds of funds and assets through various channels.
Gao Peiyong, deputy president of the Chinese Academy of Social Sciences, said that instead of raising the fiscal deficit rate by a large margin, it was a new feature of the current tax reduction and fee reduction measures to combine tax reduction and fee reduction with the overall consideration of reducing government expenditure.