(Economic Watch) Helping enterprises to bail out: the effect of China's VAT refund policy begins to show

  China News Agency, Beijing, May 10 (Reporter Zhao Jianhua) From April 1 to 30 this year, China has already refunded 801.5 billion yuan (RMB, the same below) VAT credits and refunds to 1.452 million taxpayer accounts. Coupled with the 123.3 billion yuan of tax rebates that continued to be implemented in the previous quarter, a total of 924.8 billion yuan of tax rebates were refunded to taxpayers' accounts from January to April, and the policy effect of helping enterprises to bail out has begun to show.

  This year, China has implemented a large-scale VAT credit and refund policy, and it is estimated that the newly added credit and refund will be about 1.5 trillion yuan.

In order to ensure the implementation of the policy, the Ministry of Finance, the State Administration of Taxation, and the People's Bank of China established a three-department consultation mechanism, and the three departments jointly held a press conference on the tax refund on the 10th.

At the press conference, Wang Daoshu, deputy director of the State Administration of Taxation, announced the above data.

  Wang Daoshu said that the tax rebate policy has expanded the scope, increased the proportion of tax rebates, and accelerated the frequency.

The policy covers all eligible small and micro enterprises, as well as "manufacturing", "scientific research and technical services", "electricity, heat, gas and water production and supply", "software and information technology services", "ecological protection and environmental governance" ” and “transportation, warehousing and postal industry”, accurately anchor the operation of the national economy and key links in the industrial chain and supply chain, fully reflect the clear policy orientation of helping stabilize growth, ensure employment, and benefit people’s livelihood, and play a role in helping entities, expanding Active role in investment and promotion of innovation.

  At the press conference, Jia Rong'e, director of the Department of Taxation and Administration of the Ministry of Finance, said that compared with reducing taxes and increasing government investment, the effect of the tax rebate policy is more direct and timely.

The tax rebate policy implemented this year gives priority to small and micro enterprises.

The ability of small and micro enterprises to resist risks is relatively weak. When small and micro enterprises are short of funds, the "timely rain" of tax refunds will directly increase the cash flow of enterprises, which will greatly enhance the development confidence and confidence of small and micro enterprises, and help small and micro enterprises. Micro-enterprises and individual industrial and commercial households have overcome difficulties and recovered.

At the same time, focus on supporting industries such as manufacturing, and comprehensively solve the problem of tax credits in manufacturing and other industries.

During the period, the progress of tax rebates will be accelerated, allowing enterprises to benefit earlier.

  In order to ensure the timely refund of tax rebates and the normal financial operation, the grassroots financial resources are supported by the central government.

According to Wang Jianfan, director of the Budget Department of the Ministry of Finance, the Ministry of Finance allocated 1.2 trillion yuan of special funds to support local governments in implementing the tax rebate policy and ensure the smooth operation of county and district finances.

Including the newly introduced special fund of 620 billion yuan for the tax rebate policy, 300 billion yuan of other special funds for tax rebates, tax reduction and fee reduction, and 280 billion yuan of special funds to supplement the financial resources of counties and districts.

The central finance will include special funds into the scope of direct funds, and implement separate allocation.

Among them, the 800 billion yuan transfer payment funds included in the 2022 budget have been issued in batches.

  At the press conference, Dong Huajie, director of the treasury bureau of the People's Bank of China, said that since 2022, the accumulated profit of 800 billion yuan has been turned over, and the annual profit will exceed 1.1 trillion yuan, laying a solid foundation for the protection of tax rebate funds and directly enhancing the financial resources available to the government .

The 800 billion yuan of profits that have been turned over is equivalent to a 0.4 percentage point reduction in the reserve requirement ratio, and it cooperates with other monetary policy operations to maintain a reasonable and sufficient liquidity.