In October, tax revenue fell by 5.1% year-on-year, and a number of tax reduction policies were put in place, and corporate tax burdens were significantly reduced. Recently, a series of important meetings of the central government issued a clear policy signal: to promote substantial tax cuts such as value-added tax, and to be simple and easy to operate, to enhance the sense of corporate access; for small and micro enterprises, technology-based start-ups can implement inclusive taxation Exemption -

According to the latest data from the Ministry of Finance, the fiscal revenue in October fell for the first time this year, reflecting the obvious effect of tax reduction and fee reduction.

We will promote substantial tax cuts such as value-added tax, increase tax cuts and reduce tariffs... The central government has a series of clear policy signals to boost market and business confidence. In the next step, what aspects should be reduced in terms of tax reduction and fee reduction, and how can enterprises be more sensational? On related issues, the Economic Daily·China Economic Net reporter interviewed experts and scholars.

Fiscal revenue first fell year-on-year

Since the beginning of this year, fiscal revenue has maintained a relatively fast growth rate, especially in the first half of the year, the increase in fiscal revenue is higher than GDP growth, and has received social attention. In this regard, the Minister of Finance Liu Kun explained that GDP growth rate is calculated at constant price, and the growth rate of fiscal revenue is calculated at current price, which cannot be directly compared; the effect of tax reduction policy will take some time.

"We had expected at the beginning of the year when we budgeted that the fiscal revenue will maintain a certain growth rate in the first half of this year, but the growth rate will fall in the second half of the year." Liu Kun said.

In fact, since June, the national fiscal revenue has slowed significantly from the double-digit or near double-digit growth rate of the first five months. The latest release of October data confirms the forecast trend of Liu Kun. In October, the national general public budget revenue was 1,572.7 billion yuan, down 3.1% year-on-year; the national general public budget revenue tax revenue was 134.64 billion yuan, down 5.1% year-on-year.

“In October, fiscal revenue accelerated the downward trend, especially the tax revenue decreased by 5.1% year-on-year. This is mainly reflected in the tax reduction effect. A number of tax reduction policies have been implemented and the corporate tax burden has been significantly reduced.” Beijing National Accounting Institute fiscal and taxation policy Li Xuhong, director of the Institute of Applied Research, said.

Wang Jun, director of the State Administration of Taxation, also said that in the first 10 months of this year, the taxation department organized tax revenues of 1,24,046 million yuan (withdrawn export tax rebates), an increase of 10.7%, but the implementation of value-added on May 1. The increase in the tax rate and other series of tax reduction measures has changed significantly. In the first four months, the tax revenue increased by 16.8%, and the tax revenue growth in the last six months fell back to 6.4%.

"In the second two months of this year, with the effect of personal income tax reduction and increase of export tax rebate rate, the scale of tax reduction for the whole year will be larger than the planned scale. The tax revenue growth organized by the taxation department will continue to fall, and the expected GDP growth rate will continue. Generally equivalent." Wang Jun said.

The tax reduction and fee reduction policy has also played an important role in promoting economic growth while lowering the growth rate of fiscal revenue. According to the latest data from the National Bureau of Statistics, from the perspective of the ring rate, fixed asset investment (excluding farmers) increased by 0.44% in October. Among them, private fixed assets investment was 3,343.4 billion yuan, an increase of 8.8%. “In the environment of investment growth, tax revenues are reduced. This is a positive signal, which means that tax cuts have a positive effect on stimulating the economy and form a virtuous circle.” Li Xuhong analyzed.

Why are some companies still "not quench their thirst"?

In recent years, China has continued to promote tax cuts and fee reductions, and continued to implement a proactive fiscal policy in 2018. In addition to the policy measures for the annual tax reduction and reduction of 1.1 trillion yuan determined at the beginning of the year, a series of measures have been introduced to promote the development of the real economy and support scientific and technological innovation. It is estimated that the scale of tax reduction and reduction will exceed 1.3 trillion yuan in the whole year. The effect is constantly emerging.

The latest data shows that as of the end of September this year, the three measures to deepen the VAT reform totaled 238.6 billion yuan in tax cuts, which greatly boosted economic development and improvement of people's livelihood. Affected by the policy of lowering the VAT rate and the tax rebate, the growth rate of industrial value-added tax fell from 20.2% in May to -8.3% in September, and the growth rate of high-end manufacturing such as general equipment, special equipment and communication equipment increased from above. In the first half of the year, 11.8%, 13.1%, and 7.6% fell to -5.2%, -7.3%, and -5.5% in the third quarter.

Support the "double innovation" tax incentives and precise efforts. Since the beginning of this year, a series of preferential policies, including the relaxation of the small-scale and low-profit enterprise standards that enjoy the halving of corporate income tax concessions, have created a good environment for promoting innovation and entrepreneurship, promoting the transformation and upgrading of the real economy and enhancing social creativity.

Recently, Wang Jun said at the private enterprise taxation symposium that in the first three quarters of this year, tax cuts, especially for private enterprises, mainly reflected “three benefits”: First, small and micro enterprises benefited. Supporting small and micro enterprises to develop tax incentives, the total tax reduction was 143.7 billion yuan, a year-on-year increase of 41.3%. Second, large private enterprises benefit. The 732 large-scale private entity enterprise groups that are mainly served by the State Administration of Taxation have a total tax reduction of 71.4 billion yuan, a year-on-year increase of 19.3%. The third is the benefit of innovative companies. Supporting scientific and technological innovation tax incentives, the total tax reduction was 401.6 billion yuan, a year-on-year increase of 22.6%.

Although tax cuts and fee reductions have released a large reform dividend, many companies still have the feeling of “not enough to quench their thirst”. Li Xuhong believes that the tax burden of enterprises is related to the fluctuation of the economic cycle. During the period of slowing economic growth, due to market and operational pressures, incomes are reduced. However, the fixed costs originally assumed by enterprises have not changed significantly, and the variable costs have not decreased significantly. Both operational capability and solvency are facing challenges. “At this time, under the premise of the same tax policy, enterprises are particularly aware of the tax burden.”

"There are many reasons for this. The tax reduction is the nominal tax rate and the statutory tax rate. Whether the actual tax burden has decreased depends on the change of the collection rate. The tax reduction policy does not guarantee that the actual tax burden of all enterprises will not rise." Zhang Bin, a researcher at the Institute of Finance and Economics of the Academy of Sciences, believes.

Promote further substantial reduction

In the face of corporate demand for reduced demand, how to further promote tax cuts and reduce fees, so that more companies feel "thirst quenching"? Recently, a series of important meetings of the central government issued clear policy signals to promote substantial tax cuts such as value-added tax, and to be simple and easy to operate, to enhance corporate access; to implement inclusiveness for small and micro enterprises and technology-based start-ups. Tax exemption...

Liu Kun said recently that the financial department will focus on strengthening the development potential, strengthen the awareness of "water and fish farming", study and implement larger tax cuts and more obvious reductions, and better promote the healthy development of the real economy.

"The next step should continue to increase tax reduction efforts, especially by reducing the VAT rate, the micro-enterprise general tax cuts, innovation-driven tax incentives, and further consolidating tax cuts to activate market vitality and promote economic growth. Positive effects." Li Xuhong said.

At present, China's VAT rate is mainly 16%, 10% and 6%. Experts generally believe that there is still room for a 16% tax rate. "Reducing the VAT rate should be considered together with the degenerate tax rate. The VAT rate in most countries in the world is 1 to 2, and the VAT system in China can further pass the degenerate tax rate to make the tax system more concise and operational. Li Xuhong said.

Zhang Bin also believes that VAT is China's largest tax category. From the perspective of “steady growth”, lowering the VAT rate is an inevitable choice to increase tax reduction.

“If you consider the reduction of the VAT rate together with the degenerate tax rate, it will help reduce the company's tax compliance costs and reduce the number of adjustments. In addition, since the VAT has a neutral principle, it is a generally imposed consumption tax, thus adding value. The decline in the tax rate can achieve a general tax cut," Li Xuhong said.

How to expand the micro-enterprise generalized tax cuts is very concerned. "It is recommended to expand the scale of VAT tax reduction for small and micro enterprises, and increase the tax exemption for value-added tax and the exemption of value-added tax for SME credit guarantee institutions to reduce taxation for small and micro enterprises and promote financing for small and micro enterprises. The preferential tax rate of 10% of the micro-enterprise income tax can further expand the coverage. At the same time, taking into account the fact that the financial strength of small and micro enterprises is weak, the tax exemption period or the direct reduction of tax amount can be reduced, so that the tax incentives for small and micro enterprises can be easily landed. Li Xuhong believes.

In Zhang Bin’s view, the current major measures for tax reduction and fee reduction should first consider reducing the social security rate. “The problem of high nominal rate and higher collection rate is urgently needed to be solved, and reducing the social security rate for cost reduction and stable employment. All have an important role. In the future, we should consider adopting various measures to raise funds for pension insurance, and should not rely too much on labor compensation."

"Currently, tax reduction and fee reduction have already issued a series of policies, the key is to implement. On the one hand, the tax authorities can optimize the business environment through simple collection and management procedures, and help the policy to fall; on the other hand, enterprises should strengthen tax management and accurately grasp Policy direction, accurately implement tax reduction policies, reduce the tax burden of enterprises to solve practical difficulties." Li Xuhong said.

Basin Faucet

Bestware Basin Faucet brings the fine design and high technology together in all areas of the product process beyond Pull Out Faucet, Commercial Faucet and Commercial Kitchen Faucet. With extensive range of components, we can offer a large selection of both standard Pre-rinse Faucet and custom Basin Tap units as well as flexible combination. Stainless steel is 100% recyclable and is comprised of over 60% recycled material, Bestware faucets are the perfect solution in the commercial and industry for better water quality and the circumvention of the development of deleterious substances and bacteria. No plating, no oxidizing, no rust, lead free.

Basin Faucet,Wash Basin Tap,Wash Basin Faucet,Bathroom Basin Tap

Bestware Hardware Production Co., Ltd. , https://www.bestwarefaucets.com