What benefits will the implementation of tax cuts bring to businesses?
“Optimizing and implementing the tax reduction policy is an important measure for macroeconomic policies to continue to bail out market players and maintain necessary support,” said Zhang Bin, vice president of the University of Chinese Academy of Social Sciences.
In 2020, more than 2.5 trillion yuan in tax and fee reductions will be added nationwide, effectively reducing the burden on market players. 2021 is the first year of the “14th Five-Year Plan”. This year’s government work report once again set a “hard target” for tax reduction and fee reduction: raising the value-added tax threshold for small-scale taxpayers from 100,000 yuan in monthly sales To 150,000 yuan; for small and micro enterprises and individual industrial and commercial households with an annual taxable income of fewer than 1 million yuan, based on the current preferential policies, the income tax will be halved.
Several representatives and industry experts said that this year’s government work report proposed a series of new tax-related policies, reflecting the scientific and sustainable fiscal policy, which can effectively reduce the burden on market players, stimulate the vitality of market players, and contribute to the high quality of the economy. developing.
Ma Xinqiang, deputy to the National People’s Congress and secretary of the party committee, chairman and president of Huagong Technology Industry Co., Ltd., said that as a leader in the laser technology industry, after opening the account book of tax reduction and fee reduction of Huagong Technology over the years, the strong support of taxation is on the paper: 2018, enjoy various tax and fee discounts of 143 million yuan; in 2019, enjoy various tax and fee discounts of 111 million yuan; in 2020, enjoy various tax and fee discounts of 167 million yuan. “Especially during the epidemic, the state has intensively introduced a package of preferential tax and fee policies, which has boosted the confidence of enterprises to cope with the impact of the epidemic and promote the resumption of production and production.” Ma Xinqiang said.
“In 2020, Gree Electric will enjoy tax cuts and fee reductions and various tax incentives of over 4 billion yuan, export tax rebates of nearly 2.5 billion yuan, and incremental value-added tax refunds of 740 million yuan.” Representative of the National People’s Congress, chairman, and president of Gree Electric Appliances Dong Mingzhu posted a bill for tax reduction and fee reduction. Dong Mingzhu said that tax reduction and fee reduction will directly help stabilize capital flow, effectively reduce the operating burden of enterprises, stimulate enterprise vitality, and facilitate rapid development of enterprises.
Fan Yong, Secretary of the Party Committee of the School of Finance and Taxation of the Central University of Finance and Economics, said that as a major macroeconomic policy in my country, tax reduction and fee reduction are an important part of my country’s fiscal and taxation system reform, and a major decision to deepen supply-side structural reform and promote high-quality economic development. It is a major measure to reduce the burden on enterprises and stimulate the vitality of market players.
Li Xuhong, a professor at the National Accounting Institute in Beijing, pointed out that this year’s government work report sets three keynotes for tax cuts in 2021: First, continue to increase tax cuts for small and micro enterprises; It is expected to play a positive role; the second is to focus on structural tax reduction. Based on tax reduction, in 2021, emphasis should be placed on optimization, and modern tax collection and management methods should be used to implement tax reduction policies. The function of the development strategy is tilted, and the tax incentive mechanism is used to promote enterprises to lead development with innovation.
