(Economic Observation) China's preferential tax policy "sends charcoal in the snow"

  China News Service, Beijing, December 17 (Reporter Zhao Jianhua) Coal prices have risen, and China's coal power and heating companies were once faced with difficulties.

China has introduced a series of measures to ensure energy supply, including the deferment of taxes paid by coal-fired power and heating companies in the fourth quarter of this year to alleviate business difficulties.

According to data released by the State Administration of Taxation on the 17th, as of December 2nd, more than 4,800 coal-fired power and heating companies across the country have processed a total of 21.57 billion yuan (RMB, the same below) in tax reductions, refunds, and deferrals.

  Recently, Shanxi, a major coal province in China, has maintained an average daily coal production of more than 3.3 million tons, and railway transportation companies quickly transported this coal to major coal, electricity and heating companies across the country.

The relevant person in charge of the National Energy Administration said a few days ago that the country's tight power supply and demand situation has eased.

  In order to help coal power and heat supply companies survive the "cold winter", in September this year, the State Administration of Taxation issued a notice requiring local tax authorities to implement the "reduction, rebate, and deferral" tax measures to support coal power and heat supply companies in alleviating their difficulties. Ensure that coal-fired power and heating companies should enjoy the tax and fee concessions, the value-added tax rebate should be refunded, and the difficulty of meeting the conditions should be slowed down as soon as possible.

  "The tax payment of more than 30 million yuan has been postponed, reducing the financial pressure of enterprises and making this winter warmer!" said Wang Guohui, general manager of Huaneng Songyuan Thermal Power Co., Ltd., located in Songyuan City, Jilin Province.

This company has already enjoyed the preferential policies for coal-fired power companies in time.

  In addition to coal-fired power companies, there are many small and medium-sized enterprises in the manufacturing sector who feel the need to send charcoal in the snow.

The State Administration of Taxation and the Ministry of Finance issued at the end of October the "Announcement on Matters Concerning the Delay in Payment of Some Taxes and Fees for the Fourth Quarter of 2021 for Manufacturing Small and Medium-sized Enterprises" clarified that all taxes on manufacturing small and micro enterprises (including individual industrial and commercial households) will be paid Tax deferment; the tax deferment for medium-sized manufacturing enterprises is 50%, and enterprises with special difficulties can apply for all tax deferment.

  According to data released by the State Administration of Taxation, as of December 8, a total of 78.33 billion yuan has been delayed in the payment of taxes and fees for small, medium and micro manufacturing enterprises nationwide.

This phased tax deferment policy covers a wide range, involves a wide range of taxes, and is highly targeted.

Compared with the previous policies, the coverage of the new measures has been significantly expanded, covering not only small and micro enterprises, but also medium-sized enterprises. The taxes and fees involved in deferred payment include corporate income tax, personal income tax (except withholding and payment), and domestic value-added tax. , Domestic consumption tax and additional urban maintenance and construction tax, education surcharge, local education surcharge, more than 90% of the corporate tax burden comes from these taxes.

  In addition to the phased tax relief measures, the Chinese tax authorities also refunded the incremental value-added tax credits to advanced manufacturing enterprises in full monthly, and 60% of the incremental incremental tax credits to other manufacturing enterprises.

  In the first three quarters of this year, China's tax authorities handled a total of 91.7 billion yuan in tax refunds for 22,400 manufacturing enterprises, of which 11,600 advanced manufacturing enterprises handled 42 billion yuan in tax refunds to support the development of the manufacturing industry.

  Tang Jiqiang, chief researcher at the West Finance Think Tank of Southwestern University of Finance and Economics, said that this year's tax and fee reduction policy highlights structural tax cuts.

The tax reduction policy for small, medium and micro enterprises in the precision drip irrigation manufacturing industry can effectively offset the double financial pressure of the company's raw material price increase and the extension of the payment cycle. It has a positive effect on helping companies reduce burdens, get rid of current difficulties, transform and upgrade, and improve competitiveness.

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