(Economic Watch) In 2021, China's fiscal policy will launch a new round of tax and fee reduction channels

  China News Service, Beijing, January 20 (Reporter Zhao Jianhua) China's economy will grow by 8.1% in 2021.

A proactive fiscal policy and a prudent monetary policy work together. Among them, by cutting taxes and fees, and increasing investment, the proactive fiscal policy has achieved the expected results.

  In the face of internal and external challenges, China's economy will perform well in 2021, and various indicators such as total retail sales of consumer goods, residents' income, employment rate, and foreign trade are stable, which impressed experts deeply.

Bai Jingming, a researcher and former vice president of the Chinese Academy of Fiscal Sciences, analyzed that the macro, micro, structural, scientific and technological policies, reform and opening-up policies, including active fiscal policies, are precise.

  Bai Jingming said that the active fiscal policy ensures and stabilizes growth, but does not engage in flood irrigation, maintains a moderate intensity, and avoids excessive costs and risks.

In 2021, taking into account the effective control of the epidemic and the gradual recovery of the economy, the deficit rate will be set at around 3.2%, which is lower than the previous year. ; Special debt is 3.65 trillion yuan, 100 billion yuan less than in 2020.

The industry once doubted whether it was appropriate to reduce the deficit.

  The annual growth rate of 8.1% proves that in 2021, China took the initiative to adjust the size of the deficit, which achieved the expected effect, and at the same time reduced the cost including debt repayment.

High-intensity tax cuts and fee reductions and high-intensity expansion expenditures are carried out simultaneously. There are not many countries in the world that can do this.

  In 2020, China will cut taxes and fees by more than 2.6 trillion yuan, and the national general public budget will spend 24.66 trillion yuan.

In 2021, it is expected that the new tax cuts and fee reductions will reach 1 trillion yuan for the whole year, and the national general public budget expenditure from January to November will exceed 21.39 trillion yuan, a year-on-year increase of 2.9%.

Through precise efforts, China has improved the efficiency of policies to stimulate economic growth.

  Li Xuhong, director of the Institute of Fiscal and Taxation Policy and Application of the National Accounting Institute in Beijing, analyzed that in 2021, China's active fiscal policy will expand domestic demand, promote consumption, and stimulate economic growth, injecting strong endogenous momentum into economic development.

Specifically include:

  Through tax reduction and fee reduction for small, medium and micro enterprises, employment and people's livelihood have been guaranteed, and the fundamentals of macroeconomic growth have been stabilized; through preferential policies such as personal income tax, such as delaying the tax calculation of one-time bonuses for the whole year, the tax burden of individuals has been reduced , increase the disposable income of residents, enhance personal consumption ability, promote consumption, and expand domestic demand; through policies such as increasing the ratio of R&D expenses super deduction, incremental value-added tax refunds and other policies to encourage enterprises to increase R&D investment and promote enterprise transformation and upgrading, drive High-tech and emerging industries will increase new growth points of the economy; through measures such as special bonds, a certain amount of fiscal expenditure will be maintained, and government investment will be used to drive economic growth.

  Entering 2022, facing the triple pressure of demand contraction, supply shock, and weakening expectations, Li Xuhong said that active fiscal policy still needs to play an important role.

Increase market confidence by reducing taxes and fees; carry out infrastructure investment moderately ahead of schedule to ensure a certain expenditure intensity and progress, and stimulate economic growth; solve the cash flow problem of enterprises through policies such as value-added tax credits and refunds, and stabilize economic growth; Policies such as the deduction of research and development expenses, continue to support scientific and technological innovation, and take the road of high-quality development.

  The Central Economic Work Conference held last month has made it clear that a new tax and fee reduction policy will be implemented in 2022 to strengthen support for small, medium and micro enterprises, individual industrial and commercial households, manufacturing, and risk mitigation.

  Today, a new round of tax cuts and fee reductions has opened.

  The executive meeting of the State Council held on January 19 decided to continue the implementation of some expired tax and fee reduction policies to support the rescue and development of enterprises.

On the basis of the extension of some expiring tax and fee preferential policies in the previous period, the implementation of another 11 tax and fee preferential policies involving technology, employment and entrepreneurship, medical care, education, etc. will continue until the end of 2023.

  The extension of the tax and fee reduction policy was announced at the beginning of the year, according to Shi Wenpo, an associate researcher at the Public Revenue Research Center of the Chinese Academy of Fiscal Sciences, to allow companies to better enjoy policy dividends, stabilize confidence and stimulate investment.

It is believed that the new tax and fee reduction policies in 2022 will be announced one after another.

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