The new tax and fee cuts in the first three quarters exceed 2 trillion yuan, the annual scale is expected to reach 2.5 trillion yuan.

New tax and fee cuts in the first three quarters exceed 2 trillion yuan, the annual scale is expected to reach 2.5 trillion yuan

Our reporter / Du Lijuan / Report from Beijing

Based on the 2.36 trillion yuan in tax and fee cuts last year, it is expected to expand again this year.

On November 6, a reporter for China Business Daily learned from the State Tax Administration that in the first three quarters of 2020, the cumulative total of new tax cuts and tariff reductions across the country exceeded 2 trillion yuan. , reaching 2,092.4 trillion yuan, the same as the 1,783.4 trillion yuan last year. Compared to that, this year it has risen by more than 309 billion yuan, an increase of 14.8%.

According to the requirements of the “Government Work Report”, in 2020 China should not discount, seriously fulfill its commitment to reduce taxes and fees, and further scale up new tax and fee reductions based on the last year. New business burden is forecast to drop by more than 2.5 during the year. Trillions of yuan.

“According to the law of tax cuts and rate reductions in the past, generally the former is strict and the latter is lazy. Many tasks are basically completed in the second half of the year. Based on the data for the first three quarters, the remaining four quarters are also the key period for the release of policy dividends. It is expected to be completed for the entire year. The goal of 2.5 trillion yuan is not that difficult. ”A person from the tax and tax system judged this way.

The reporter learned that among the 2.5 trillion yuan tax and fee reduction target, preferential tax policies introduced during the epidemic accounted for the majority. So far, the State Tax Administration and the Ministry of Finance have issued more than 10 policy announcements, among which small and micro-enterprises have benefited the most.

According to the relevant policies and regulations, from March 1 to December 31, 2020, except in Hubei province, small-scale value-added contributors in other provinces, autonomous regions and municipalities directly dependent on the Central Government will apply a taxable sales income of 3%, a reduction of 1 VAT is applied at a rate of%.

According to the Asia-Pacific Small and Micro-Enterprise Survey published by the Australian Institute of Accountants, rising costs are still considered one of the biggest constraints facing small and micro-enterprise development in mainland China.

This survey shows that since the outbreak of the new crown pneumonia, the Chinese government has introduced a series of fiscal and monetary support policies for small and micro enterprises, especially the recent reduction of the value-added tax rate for small businesses. taxpayers and the injection of trillions of liquidity into the market. The measures have provided effective help in rescuing companies.

Cai Zili, Director of the Revenue Planning and Accounting Department of the State Tax Administration, presented that the preferential tax and tariff policies introduced this year to support the prevention and control of epidemics and economic and social development have added 1,365. 900 million yuan in tax and fee reductions. Policies introduced in the middle of last year have added additional reductions this year. The tax cut was 726.5 billion yuan.

For market players, the dividends from the tax and fee reduction policy have not only reduced the burden of corporate taxes and fees, but have also supported the rapid recovery of China’s economy. On October 20, the Information Office of the State Council presented the operation of the national economy in the first three quarters of 2020. According to preliminary calculations, the gross domestic product (GDP) in the first three quarters was 7.22786 billion yuan , a year-on-year increase of 0.7%, and went from negative to positive.

Liu Aihua, spokesman for the National Statistics Office and director of the General Department of Statistics of the National Economy, said that in quarterly terms, the first quarter GDP fell 6.8% year-on-year, the second quarter grew 3.2% and the third quarter grew by 4.9%.

The aforementioned financial and tax system staff believe that the effects of tax cuts and rate reductions in the first three quarters have made a positive contribution to the rate of economic growth in the third quarter from negative to positive. “From a micro level, reducing the corporate tax burden will have a positive impact on cost reduction and profit growth. Compared to the past, after tax reduction and fee reduction, companies can use the tax savings they save on corporate replication, which will further increase Until the end of retail. “

For the private economy, this transmission effect seems more evident. Tax data shows that in the first three quarters of this year, sales revenue for the domestic private economy increased 3.7% year-on-year, 1.9 percentage points higher than the growth rate of all corporate sales revenue. Among them, the third quarter increased 14.8% year-on-year, 3.2 percentage points higher than the growth rate of the second quarter. The private economy recovered faster.

In fact, as a “highlight” of the proactive fiscal policy, in recent years, the measures to reduce taxes and fees have been “additive”. The latest data released by the State Administration of Taxation shows that the new tax and fee cuts from 2016 to 2020 will accumulate at about 7.6 trillion yuan. Especially after the implementation of larger-scale tax and fee cuts in 2019, the new annual tax and fee cuts reached 2.36 trillion yuan, representing more than 2% of GDP and driving annual GDP growth. by approximately 0.8 percentage points.

Wu Jiayuan, a member of the APC Australia North China Committee, said in an interview that with the continued increase in the scale of tax cuts and tariff reductions, this reform has gradually turned into an institutional policy arrangement. Compared to previous phased policy documents issued by the department, the Sexual Policies system is more restrictive. For companies, stable policies can allow them to have a relatively stable strategic design, which actually leads to the long-term development of companies.

According to the requirements of the “Government Work Report”, in the future, we will continue to increase tax and fee reductions, and at the same time strengthen policies in stages, combine with institutional arrangements, comply with the release of water and fish and we will help market players to ease their development.

Cai Zili said that in the next step, the tax department will also accelerate the transformation of its functions, make greater efforts to implement various tax and fee reduction policies for relief and benefit companies, and continue to optimize the payment services of taxes, in order to reduce taxes and fees. Get the benefits of the company and the people, to stimulate the vitality of various market players

Editor in charge: Shao Yuxiang