Chen Zhiheng, Assistant Researcher, Chongyang Institute for Financial Studies, Renmin University of China
On February 22, the State Council Information Office held a press conference on fiscal reform and development, at which it stated that this year, it will continue to "continue the implementation of 11 preferential tax and fee policies involving technology, employment and entrepreneurship, medical care, education, etc., and expand some existing policies. preferential policies, and to launch some new policy measures as soon as possible.”
This is another "red envelope" after the continuous implementation of the preferential tax policy at the end of last year, and the scale will be larger.
First, "continued implementation" promotes economic stability.
In the six years since the "13th Five-Year Plan", China's cumulative new tax cuts and fee reductions have exceeded 8.6 trillion yuan, and remarkable results have been achieved in stimulating market vitality and promoting economic development. Not only can it continue to bring cost reductions and burden reductions to enterprises, but also help to promote the continuous inflow of resources into related fields, and accumulate more and more to promote the exponential growth of growth rate, thereby consolidating the good expectations of the outside world for the economy.
Second, the tax incentives cover a wide range of fields.
In terms of policy content, the preferential tax policies cover 11 aspects, including technology, employment and entrepreneurship, medical care, and education.
The policy not only reflects the universality of the tax policy, but also achieves precise irrigation and immediate effect by clarifying the scope of governance.
Finally, the incentives continue to expand.
It is necessary to adhere to the macro policy of "stabilizing the word", especially in the process of deepening the supply-side structural reform in China, the impact of the epidemic on the economy still exists, and expanding the intensity of tax and fee reduction will help ease the development pressure currently faced by enterprises. , to provide more stable support for small and medium-sized enterprises to solve their difficulties.
In the cycle of economic development, the relevant policies of tax and fee reduction will play a dual purpose and function in the short-term and in the medium and long term.
In the short term, tax and fee reduction is an important policy measure for a proactive fiscal policy, and it plays a role in counter-cyclical adjustment, especially in stimulating the vitality of market players, reducing the burden on market players, and stabilizing market expectations. See, tax reduction and fee reduction will enhance the neutral environment of the tax system, better play the leading role of the market in resource allocation, and form a tax and fee system that matches high-quality development. Continue to make efforts to mobilize new vitality.
A statistic shows that the vitality of Chinese market players has been significantly improved: the total number of players currently active in the Chinese market has exceeded 150 million.
Among them, 13.26 million new tax-related market entities will be added in 2021, a year-on-year increase of 15.9%.
The implementation of relevant policies to reduce taxes and fees has reduced the burden on market players, and at the same time has brought China's total economic output to one trillion yuan, forming a resilient economic market.
From this point of view, tax cuts and fee reductions have not only not reduced tax revenue, but have stimulated the vitality of market entities and made tax sources more diverse.
From the data point of view, the national general public budget revenue in 2021 will be 20.25 trillion yuan, an increase of 10.7% over the previous year, and the revenue budget will be completed.
In 2021, the national general public budget expenditure will be 24.63 trillion yuan, a year-on-year increase of 0.3%, providing solid financial support for the "14th Five-Year Plan" to get off to a good start.
One of the main purposes of maintaining the vitality of market entities is to stabilize employment and maintain social stability.
For the whole year of 2021, the national average urban survey unemployment rate is 5.1%, down 0.5 percentage points from the average of the previous year, and the employment situation is generally stable.
From this point of view, tax cuts and fee reductions have not only awakened the vitality of market entities, but also released potential employment space.
At present, China has the world's largest market and the most complete industrial chain. The policy effect of deepening tax cuts and fee reductions will fundamentally consolidate the fundamentals of China's economic development, thereby supporting the fundamentals of China's employment.
China has entered the new period of the "14th Five-Year Plan", and the policy of reducing taxes and fees is still one of the main means of promoting economic development and promoting the vitality of market players. It is necessary to take various policy measures to jointly promote the implementation of the policy.
When improving the pertinence and effectiveness of tax reduction and fee reduction policies and measures, it is necessary to implement tax reduction and fee reduction in accordance with the procedural process, do a good job of pre-calculation, in-process monitoring, and post-event evaluation.
At the same time, it is necessary to grasp the coordination relationship between the government and the market, and clarify the boundary between the two.
First of all, to further improve China's commercial system.
Promote the reform of "separation of licenses and licenses" with higher standards, lower the threshold for quasi-operation, and improve the list management system.
Taking the "Regulations on the Registration and Administration of Market Entities" as the starting point, a more mature management system for market entities will be formed.
Continue to deepen the reform of "delegating power, delegating power, regulating services", focusing on cultivating and stimulating the vitality of market entities, further shortening the service cycle and improving efficiency.
Second, create a fair and just business environment.
Deepen the role of credit supervision, and form a supervision chain of "participating in the cultivation of credit before the event, regulating the supervision behavior during the event, and strengthening the punishment for dishonesty after the event".
Comprehensively collect enterprise-related credit information through technical means such as big data and artificial intelligence, strengthen information publicity and data management and control, and form a strong binding force.
Solidly promote the "double random, one open" supervision and classification management of enterprise credit risk, and further improve the effectiveness in reducing the burden on enterprises, optimizing the business environment, and improving the efficiency of supervision.
Finally, strengthen the efficiency of capital use to improve the sense of gain of market players.
Improve the financial budget system by field and level, and implement the process of early planning, mid-term use, and post-assessment, so as to reduce waste and idle funds, and accurately drip irrigation to promote economic development.
While implementing a proactive fiscal policy, a prudent monetary policy needs to work at the same time, improve the monetary policy toolbox, promote the market-oriented reform of interest rates, and ensure that diversified market players can obtain matching financial support as needed.
Continuing to promote and implement relevant policies of tax and fee reduction is an effective means for China to implement macroeconomic control policies, which is conducive to promoting and stimulating the vitality of market players in various aspects, and has a positive effect on the high-quality development of China's economy.
To this end, continuous efforts in terms of fiscal sustainability, tax system reform and tax legislation can effectively maintain a sound economic operation and promote the high-quality realization of the economic goals of the 14th Five-Year Plan.