Many provinces have introduced fiscal and taxation support policies to fight for the economy. What are the highlights?

　　After the Spring Festival holiday, fighting the economy has become a key task in many provinces, among which fiscal and tax support policies are essential.

　　A reporter from China Business News sorted out and found that when Jiangsu, Guangdong, Shanghai, Liaoning and other places issued relevant policies recently, they clarified local fiscal and tax support policies, involving tax rebates, tax and fee reductions, fiscal discounts, subsidies, incentives, policy guarantees, special bonds, etc. The purpose of various tools is to reduce the burden on enterprises and other market entities, support the development of enterprises, so as to ensure the stability of the economy of market entities.

This also reflects that this year's proactive fiscal policy will "intensify efforts to improve efficiency" and promote economic operation within a reasonable range.

Tax support remains key

　　The current economic recovery is not yet solid, and some enterprises are still struggling to operate. Tax and fee support policies are still very critical, especially for small and micro enterprises, individual industrial and commercial households, and industries in difficulty.

However, as the epidemic prevention and control enters a new stage, considering fiscal affordability and tax fairness, the strength and scope of some tax and fee support policies have been adjusted.

　　The Jiangsu provincial government recently issued "Several Policies and Measures on Promoting Economic Operations to Take the Lead in the Overall Improvement" (hereinafter referred to as "Jiangsu Measures"), requiring all efforts to promote the overall improvement of the economic operation. The top support measures are to continue to increase fiscal and taxation support. , a number of tax relief policies.

　　Shanghai recently issued the "Shanghai Action Plan for Improving Confidence, Expanding Demand, Stabilizing Growth, and Promoting Development" (hereinafter referred to as "Shanghai Plan"), which requires efforts to achieve the main expected goals of economic development throughout the year. fee policy.

　　Guangdong has recently published "Guangdong Province's Several Measures for Cultivating and Supporting Individual Industrial and Commercial Households", which will reduce the burden on self-employed individuals in terms of tax burden and operating costs, so as to prosper the economy and stabilize employment.

In addition, Liaoning and other provinces have also recently introduced economic stabilization policies, which also involve fiscal and taxation support measures such as taxes and fees.

　　Judging from the details of specific tax and fee support policies, Jiangsu, Guangdong, Shanghai and other places have clearly implemented policies such as VAT reduction and exemption for small-scale VAT taxpayers this year.

　　Since the tax power is concentrated in the central government, many tax and fee support policies are implemented by the state.

For example, not long ago, the state issued a preferential policy of VAT reduction and exemption for small-scale VAT taxpayers, which mainly includes the exemption of VAT for small-scale VAT taxpayers with monthly sales of less than 100,000 yuan this year; 3% for small-scale VAT taxpayers. The levy rate is reduced to 1%, and taxpayers in the productive service industry and daily service industry are allowed to offset the tax payable according to the current deductible input tax amount by an additional 5% and an additional 10%.

　　Li Jun, PwC China's industry development and tax strategy leader, told China Business News that continuing to implement the above-mentioned preferential tax cut policies will help reduce the burden on enterprises, boost enterprise confidence, and stimulate market vitality.

The special preferential policies during the epidemic period will be gradually withdrawn as the epidemic ends, and the reduction of tax cut policies this year also reflects this trend, which also takes into account the current pressure on fiscal revenue growth.

Of course, based on the actual economic recovery, further policy adjustments cannot be ruled out.

　　Tian Zhiwei, deputy director of the Public Policy and Governance Research Institute of Shanghai University of Finance and Economics, told China Business News that the strength of the above three preferential policies for value-added tax has declined to varying degrees.

Although these preferential tax policies have played an important role in protecting market players, maintaining employment, and stabilizing economic growth in the past few years, they have also reduced tax revenue and increased the pressure on fiscal revenue and expenditure balance.

Too many preferential tax policy settings are not conducive to the exertion of the tax neutrality advantage of value-added tax, and may breed tax evasion problems.

As the economy has entered the stage of recovery, temporary preferential tax policies should be gradually withdrawn to ensure the tax-neutral advantage of VAT.

　　Generally speaking, during the two sessions of the country, the national level will clarify the new tax and fee preferential policies introduced this year, so the local governments are also waiting for specific policies to declare their implementation.

For example, the "Shanghai Plan" stated that the new tax and fee reduction policies introduced by the country will be fully implemented.

In accordance with the requirements of the relevant national policies, eligible enterprises in the manufacturing, wholesale and retail industries will continue to be refunded the full amount of value-added tax incremental tax credits on a monthly basis.

　　Of course, within the scope of the authorization of the central government, the local government has introduced specific tax and fee reduction policies based on local actual conditions, including small and micro businesses, self-employed businesses, and difficult industries.

　　For example, Jiangsu, Shanghai, Guangdong and other places have made it clear that from January 1, 2023 to December 31, 2024, the resource tax of small-scale VAT taxpayers, small low-profit enterprises and individual industrial and commercial households will continue to be reduced and exempted at a rate of 50% of the maximum rate. , urban maintenance and construction tax, real estate tax, urban land use tax and other "six taxes and two fees".

　　The "Jiangsu Measures" stated that taxpayers in the accommodation and catering, sports and entertainment, transportation, tourism, retail, and warehousing industries and small-scale value-added tax taxpayers will be temporarily exempted from property tax and urban land use tax in the first half of 2023.

　　In terms of fee reduction, the "Several Policies and Measures of Liaoning Province to Further Stabilize the Economy" clearly stated that for small and micro enterprises in the service industry and individual industrial and commercial households that lease state-owned houses for production and operation activities, the house rent for three months in 2023 will be exempted.

The "Jiangsu Measures" stated that the fees for regular inspections and supervisory inspections of elevators, boilers, and pressure vessels in the accommodation and catering industry will be halved.

　　In addition to direct tax and fee reductions, many provinces also make full use of deferred tax payment policies, such as deferred payment of social security fees, water and electricity fees, and project quality guarantee funds, to reduce the current financial pressure on enterprises.

Fiscal portfolio strikes

　　In terms of fiscal and tax support policies, in addition to tax and fee support policies, localities also generally use fiscal special funds and fiscal subsidies to directly support relevant market entities.

　　For example, the "Jiangsu Measures" stated that the provincial industrial and information industry transformation and upgrading special funds allocated 1.2 billion yuan to support industrial enterprises to carry out projects such as free diagnosis, high-end transformation and upgrading, intelligent manufacturing and industrial Internet benchmarking demonstrations, and integrated application innovations to promote Small and medium-sized enterprises use the cloud platform to accelerate the intelligent transformation and digital transformation of the manufacturing industry.

　　According to the "Shanghai Plan", the replacement subsidy for new energy vehicles will continue to be implemented. Before June 30, 2023, individual consumers who scrap or transfer out their passenger cars registered in Shanghai and meet the relevant standards and purchase pure electric vehicles will be given A financial subsidy of 10,000 yuan per vehicle.

　　In order to support corporate financing, the government also makes full use of policy-based financing guarantee funds and fiscal discounts to help corporate financing and reduce financing costs.

　　For example, Shanghai clarified that in 2023, the municipal policy financing guarantee fund for small, medium and micro enterprises will continue to charge guarantee fees at 0.5%, and encourage district-level government financing guarantee institutions to continue to halve the guarantee fee rate.

Jiangsu has set up a 10 billion-yuan special fund loan for small, medium and micro enterprises to rescue and increase production and efficiency. The provincial finance has arranged 100 million yuan of interest discount funds from the special fund for inclusive financial development to support the development of small, medium and micro enterprises, increase production and increase efficiency.

Implement the interest discount policy for equipment purchase and renovation loans, and give 2.5 percentage points of interest discount to eligible projects for a period of 2 years.

　　Stabilizing the economy focuses on stabilizing investment, among which the government's increased investment in infrastructure construction is a key move.

Last year, the growth rate of infrastructure investment rebounded against the trend, with a year-on-year growth of 9.4%.

A number of experts told China Business News that there is a high probability that infrastructure investment will remain an important support for the macro economy this year, and it is expected to maintain a relatively high growth rate.

　　Many places attach great importance to special bonds and national policy development financial instruments to obtain more infrastructure funds, expand effective investment by local governments, and boost the economy.

　　For example, the "Shanghai Plan" requires that the expansion of investment policies and tools such as national policy development financial instruments (funds), special bonds, medium and long-term loans for manufacturing, and infrastructure REITs be used to accelerate the issuance and use of local government special bonds in 2023. Do a good job in reserve and declaration of key projects.

　　The "Jiangsu Measures" stated that capital support for major projects in cities and counties should be strengthened, and more qualified local projects should be supported to apply for local government special bonds as capital.

Encourage project legal persons and project investors to actively strive for national structural financial instruments, and raise project capital through multiple channels through the issuance of equity and equity financial instruments.

　　According to public data, since January this year, Guangdong, Jiangsu, Henan, Hubei, Sichuan, Jiangxi, Hunan and other places have issued more than 400 billion yuan of new bonds.

This part of the funds is invested in major infrastructure construction and other projects, which is conducive to stabilizing investment, making up for shortcomings and stabilizing the economy.