Can Tax Cuts Solve The Pre Economic Problems?

For a long time, the voice of tax appealing from all sectors of society has been constantly emerging: people are calling for tax cuts because of rising prices and increasing pressure on life. Enterprises are calling for tax cuts because of worsening external environment and difficulties in operation. Scholars, based on the fact that the revenue growth in recent years is high, think that the domestic tax burden is too high and appealed for tax cuts.

In the face of this one-sided call, as a financial worker, I believe that under the premise that China's current fiscal revenue growth is slowing down, and will enter the downstream channel and the pressure of financial expenditure continues to increase, we must have a clear mind. We should carefully analyze whether there is room for further comprehensive tax reduction in China.

　　一、 算一筆減稅明細賬：政府已經減了哪些稅

In the face of a call for tax cuts, it seems that the government has not cut taxes or reduced too much in recent years.

The author has worked out a detailed account. Since the start of the new round of tax reform in 2004, the tax reduction policies for supporting economic development and improving people's livelihood have been promulgated.

In particular, this year, in response to the negative impact of the current global financial crisis on China's economy, the government has introduced a series of tax reduction policies, involving more taxes, wide beneficiaries and large tax reductions.

It can be said that in recent years, tax cuts have been steadily advancing in China.

The specific tax reduction measures are:

1. abolishing the agricultural tax

On the basis of the pilot scheme of agricultural tax reduction and exemption in 2004, China has abolished the agricultural tax from January 1, 2006.

This policy has benefited more than 800 million farmers throughout the country.

Compared with the 1999 before the rural tax and fee reform, the total burden of farmers is more than 100 billion yuan a year, and the per capita burden is about 120 yuan.

　　2. 提高工資薪金個人所得稅免征額

In 2005, the "People's Republic of China personal income tax law" was amended. From January 1, 2006, the deduction of wages from wages increased from 800 yuan per month to 1600 yuan per month. In 2007, the People's Republic of China personal income tax law was revised again, and the deduction of wage income from March 1, 2008 to 2000 yuan per month.

　　3. 免征儲蓄存款利息所得稅

Since August 15, 2007, the tax rate on income from interest on savings deposits has been reduced from 20% to 5%. Since October 9, 2008, the income tax on savings deposits has been temporarily exempted from personal income tax.

　　4. 統一內外資企業所得稅，降低企業所得稅稅率

In 2007, the Provisional Regulations of the People's Republic of China on enterprise income tax and the income tax law of foreign invested enterprises and foreign enterprises were merged, and the new People's Republic of China enterprise income tax law came into effect on January 1, 2008.

The new enterprise income tax law stipulates that the general corporate income tax rate is 25%, which has reduced the benchmark tax rate by 8 percentage points, and the tax burden has shifted from moderate to moderate.

At the same time, small and small enterprises that meet the requirements should be subject to enterprise income tax at a tax rate of 20%.

The enterprise income tax shall be levied at the rate of 15% by the high and new technology enterprises that need to be supported by the state.

　　5. 調整證券交易印花稅政策，對證券交易結算資金利息所得免征個人所得稅

Since April 24, 2008, the stamp duty rate for securities pactions has been reduced from 3 per thousand to 1 per thousand.

Since September 19, 2008, the stamp duty policy for stock pactions has been adjusted again from the current bilateral collection to the unilateral collection by the pferor.

From October 9, 2008 onwards, the interest income from securities trading settlement funds obtained by individual investors in the securities market will be exempted from personal income tax on the basis of interest income from savings deposits. That is to say, personal income tax shall be exempted from the interest income generated by the securities trading and settlement funds of individual investors in the securities market after October 9, 2008 (including October 9th).

　　6. 提高出口退稅率

In order to alleviate the difficulties of textile enterprises, stabilize exports and ensure employment, the export rebate rate of some textiles and clothing increased from 11% to 13% in August 1, 2008, and the export tax rebate rate of some bamboo products increased to 11%.

Since November 1, 2008, the export rebate rate of 3486 commodities has been raised again.

The number of commodities adjusted is about 25.8% of the total number of goods in the Customs Tariff of China.

The export rebate rate of labour intensive commodities such as textiles, clothing and toys increased to 14%, and the export rebate rate of anti HIV drugs and other high technology and high added value commodities increased to 9% to 13%.

From December 1, 2008, the export tax rebate rate of 3770 commodities, such as some labor-intensive products, mechanical and electrical products and other products with greater impact, will be further raised. The export tariffs on some steel, chemical products and grain will be abolished, and the export duties of some chemical fertilizers and nitrogenous fertilizers will be reduced.

　　7. 實施支持抗震救災和災后恢復重建的稅收扶持政策

In order to support disaster relief and disaster relief work, the Ministry of finance, the State Administration of Taxation and the General Administration of customs have issued two notices on conscientiously implementing the tax policy on earthquake relief and post disaster reconstruction and the circular on supporting tax policies for post earthquake reconstruction and reconstruction in Wenchuan. The tax relief for enterprises in the affected areas is personal income tax, personal income tax, business tax, property tax, deed tax, resource tax, urban land use tax, land value-added tax, stamp duty, vehicle and vessel tax, import and export tax and so on.

Since July 1, 2008, all the industries in the severely affected areas (except those restricted by specific industries in the state) have implemented the policy of expanding the scope of the value added tax, allowing enterprises to deduct the value added tax of newly purchased machinery and equipment.

     8. 對個人首次購買普通住房免征印花稅、土地增值稅和減征契稅

Since November 1, 2008, the rate of deed tax has been reduced from 3% to 90 for the first time for individuals to purchase ordinary housing.