On May 10, Li Keqiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, chaired a special symposium to hear opinions and suggestions from business leaders on the implementation of tax and fee reduction policies.
Li Keqiang stated that this year's tax and fee cuts are a comprehensive package policy. Relevant parties should strengthen coordination and systematically advance policies such as lowering the VAT rate, increasing the additional deduction for R&D expenses, preferential income tax for small and micro enterprises, individual income tax reform, and reducing enterprise social insurance contribution rates. It is necessary not only to ensure a significant reduction in the tax burden on manufacturing, but also to pay close attention to the tax burden of industries such as construction that drive employment, ensuring it is reduced, so as to ensure that the tax burden of all industries only decreases and does not increase. At the same time, it is necessary to ensure that the payment burden on enterprises, especially small and micro enterprises, sees a substantial reduction.
On May 8, the Ministry of Finance released the latest fiscal revenue and expenditure data, reflecting the continued effect of tax and fee reduction policies. In the first four months, among tax revenues, the growth rates of domestic VAT, individual income tax, VAT and consumption tax on imported goods, and customs duties fell significantly compared with the same period last year; among non-tax revenues, special revenues such as education surcharges related to fee reductions, and administrative and institutional charges, both declined year-on-year.
Zhang Yiqun, deputy director of the China Fiscal Budget Performance Special Committee, told Securities Daily that this reflects the state's high regard for the implementation effects of this round of tax and fee cuts and for whether enterprises can truly gain benefits during the process. In other words, it is essential to truly implement the state's package of tax and fee reduction policies, enabling enterprises to obtain real benefits and genuinely feel the burden reduction brought by the state's large-scale tax and fee concessions, ensuring that the tax burden of enterprises in all industries only decreases and never increases.
According to Securities Daily, May is the first filing period for deepening VAT reform. As policies such as expanding the scope of input tax deduction, one-time deduction for real estate input tax, and additional deductions have been introduced successively, local tax authorities have taken multiple measures to help the tax and fee reduction policies take root.
"The actual operation and implementation of tax and fee reductions across localities are going very well," Zhang Yiqun said. Tax authorities at all levels have fully launched supervision over the implementation of tax and fee reductions, strengthened policy publicity, and carried out door-to-door checks on the implementation status and the feedback from enterprises and individuals. This indicates that the state's package of tax and fee reduction policies is gradually taking effect. Whether at the national policy level or local execution level, the tax reduction policies are highly valued and expected to effectively unleash the vitality and potential of China's production factors and drive the economy toward higher-quality development.