Premier Li Keqiang of the State Council presided over the executive meeting of the State Council on March 28th to determine measures to deepen the reform of the value-added tax to further reduce the tax burden on the market; to determine the establishment of a national financing guarantee fund and to promote the alleviation of financing problems such as small and micro enterprises and “three rural issues”; Report on the State Council's progress in institutional reforms to ensure the resettlement of institutions and the adjustment of functions are in place on time; the discussion adopted the “Working Rules of the State Council (Revised Draft)”.
The meeting pointed out that in the past five years, cumulative tax reductions have increased by 2.1 trillion yuan through the implementation of the camp reform. In accordance with the arrangements of the Party Central Committee and the State Council, in order to further improve the taxation system and support the development of the real economy such as the manufacturing industry and small and micro enterprises, and continue to reduce the burden on market players, the meeting decided that from May 1, 2018, the first is to add value to the manufacturing industry. The tax rate has dropped from 17% to 16%, and the value-added tax rate for goods such as transportation, construction, basic telecommunication services, and agricultural products has dropped from 11% to 10%, and it is expected that tax reductions of 240 billion yuan will be achieved throughout the year. The second is the unified standard for small-scale VAT payers. To increase the annual sales standard for small-scale taxpayers of industrial and commercial enterprises from 500,000 yuan and 800,000 yuan to 5 million yuan, and allow companies registered as ordinary taxpayers to register as small-scale taxpayers within a certain period of time. , allowing more companies to enjoy tax reductions at lower rates. The third is the one-off refund of input tax that has not been deducted for a certain period of time for advanced manufacturing industries such as equipment manufacturing, R&D and other modern service industries, and grid companies. The implementation of the above three measures will reduce the tax burden of market entities by more than 400 billion yuan throughout the year, and domestic and foreign-funded enterprises will all benefit equally.
In accordance with the “Government Work Report” on the expansion of inclusive financial services and better service of the real economy, the meeting decided that the central finance initiative and joint willing financial institutions should jointly establish a national financing guarantee fund, with the initial funding no less than 600. 100 million yuan, in the form of equity investment, re-guarantee, and other forms of support for provinces (autonomous regions, municipalities) to carry out financing guarantee business, and drive all parties to support small and micro enterprises, "three rural" and entrepreneurial innovation. At the same time, we will strengthen the construction of a social credit system. According to the principle of “government support, market operation, cost-saving, profit-making, and risk control,” the fund will be market-oriented in making decisions and operating. According to preliminary calculations, in the next three years, the fund will support a total of RMB 500 billion in related guarantee loans, accounting for approximately one-fourth of the existing nationwide financing guarantee business, and focus on alleviating financing difficulties and financing in the inclusive areas such as small and micro enterprises and “three rural issues”. You support the development of strategic emerging industries.
The meeting pointed out that the State Council’s institutional reform is a major event of the State Council this year. The State Council has set up a special coordination group and related work is being actively and steadily promoted. The meeting called for uniting ideas and actions with the decision-making and deployment of the Party Central Committee, combining the deepening of institutional reforms with the “distribution of management services”, and focusing on transforming and optimizing government functions. Adhere to the consistent powers and responsibilities, make daily management fulfill responsibility, respond to emergencies and complement each other, form a concerted effort, and never allow management “dead ends” to ensure that the State Council’s institutional reforms and economic and social development work are smooth, orderly and coordinated, ensuring that Complete the development of the main goals and tasks throughout the year.
The meeting adopted the "Working Rules of the State Council (Revised Draft)" and decided to submit a plenary meeting of the State Council for deliberation.
(China Cement Network)
