(Fighting against New Coronary Pneumonia) China's economic war "epidemic" record: reduce the burden of 1.6 trillion yuan throughout the year, China helps companies rescue
China News Agency, Beijing, April 15 (Reporter Zhao Jianhua) The Executive Meeting of the State Council of China held on the 14th called for the implementation of detailed support policies for enterprises that have been introduced this year to help enterprises overcome difficulties; they decided to continue the preferential income tax policy for the Western Development Corporation.
Since the beginning of this year, China has issued a series of policies and measures in time to support epidemic prevention and control, guarantee supply, corporate bail-out and resumption of production. Qiao Baoyun, Dean of the China Academy of Public Finance and Policy, Central University of Finance and Economics, analyzed that it is more urgent to respond to the epidemic. First, it was difficult to resume production and production, but now facing the pressure of reducing foreign orders, the urgent need for enterprises is how to continue to survive. Compared with the past, there are too many uncertain factors.
The epidemic has impacted the global supply chain. When will the epidemic end and how will the global supply chain be? It is currently unknown. Qiao Baoyun believes that in the face of many uncertainties, domestic economic vitality and effective domestic demand should be stimulated. In the process of implementing a proactive fiscal policy, it is necessary to review the situation and plan ahead.
The newly introduced tax and fee reduction policy this year, coupled with the last year's tax and fee reduction policy, is expected to reduce the burden of 1.6 trillion yuan (RMB, the same below) for enterprises. Fan Yong, a professor at the Central University of Finance and Economics, analyzed that the scale of tax and fee reductions this year is still relatively large. Last year ’s tax cuts and fees emphasized inclusiveness. This year ’s tax cuts and fees are more targeted, reducing the value-added tax for small and micro enterprises and individual industrial and commercial households, increasing the export tax rebate rate for some products, and extending transportation and catering accommodation. The more difficult enterprises' loss-carrying years and the periodic reduction and exemption of enterprise social insurance premiums are all helping enterprises to resume production, improve expectations, and mitigate the adverse effects caused by the epidemic.
While reducing taxes and fees, the local government's special debt quota of 1.29 trillion yuan was issued in advance according to procedures. The executive meeting of the State Council pointed out that the next step is to increase the implementation of proactive fiscal policies on the basis of expanding the effective policies in the early stage, and increase the implementation of active fiscal policies, and pay attention to the procedures to issue local government special debts in advance.
Demand for special debts is strong in many places. Li Xuhong, director of the Institute of Fiscal and Taxation Policy and Application of Beijing National Accounting Institute, who has studied in many places, said that special debt is an important policy tool for implementing active fiscal policies. Special debt should be closely related to supply-side structural reforms and high-quality development, allowing it to help industrial restructuring, infrastructure improvement, and public service quality improvement: both stimulating economic growth and achieving structural optimization. She also reminded that debt risks must be effectively prevented and that fiscal sustainability must be guaranteed.
The executive meeting of the State Council also decided to reduce the 15% tax rate on enterprise-encouraged industrial enterprises located in the western region due at the end of this year, and extend the implementation period. At the same time, lowering the threshold for enjoying policies will reduce the main business income of encouraged industry projects from the 70% to 60% of the total corporate income limit for the year.
Li Xuhong, who did research in several provinces in the western region last year, said it is necessary to continue preferential income tax policies in the western region. Continue to implement preferential corporate income tax policies that support the development of the western region, and lower the threshold for enjoying preferential policies, which is conducive to supporting economic development in the western region. There are still regional differences in China's economy. The western region is vast, there are many ethnic and poor areas, and the industrial structure is single.
Fan Yong also analyzed that the preferential income tax policies for the western region will play a positive role in stabilizing investment and improving expectations, which can stimulate the development of local related industries. Supporting the development of the western region is conducive to balancing and narrowing the regional development gap, and is also conducive to the adjustment of the national industrial structure. (Finish)