Li Dongsheng: Reducing VAT Can Effectively Stimulate Domestic Demand.

Deputy to the National People's Congress

Li Dongsheng suggested that enterprises should reduce taxes in three ways, including the reduction of value-added tax, the reduction of profits from investment income tax by enterprises, and the reduction of government administrative fees.

He said tax cuts could reduce commodity prices and boost demand.

In addition, increasing the income of ordinary consumers and residents is an important aspect of stimulating domestic demand.

Interview record:

Hello, dear netizens. I'm very glad to have Li Dong here today.

Hello, Li Dong, one of your suggestions this year is

Li Dongsheng: in this year's representative proposal, I put the tax reduction again.

This proposal has been put forward for third years. From the perspective of the fiscal revenue structure of the whole country, the proportion of the government's fiscal revenue to GDP has reached 22%.

If 15 years ago, the ratio was 11%, the government would have room for structural tax cuts in terms of financial resources.

Li Dongsheng: I suggest three points: one is to lower the value added tax.

Value added tax is the largest tax category among taxes.

Last year, the accumulated value of value-added tax was 180 million. If the value-added tax is reduced, it can directly reduce the price of commodities and effectively stimulate the demand of the market.

Although VAT is absorbed by enterprises, it is ultimately consumers.

If we cut taxes, we will directly subsidize consumers.

In this way, the domestic demand market can be directly stimulated.

Two, it is suggested that profits be obtained from enterprises.

If the profit increase is invested in this part, the profit tax will be refunded, and the enterprise will have profits. If it is used for distribution, the income tax should be paid.

If the enterprises increase profits by investment, the relief of income tax will encourage enterprises to reinvest. This will speed up and promote economic development and increase the source of tax revenue.

The three is to reduce government administrative fees.

In addition to paying taxes, there are also some government administrative fees, such as educational surcharges, which are administrative fees other than taxes.

These fees are the time when these fees were fixed in the early years. Because the government's income is relatively small, some public services will not have the ability and financial resources to support them, all of which will increase some administrative fees.

Now the government's overall revenue has been greatly improved. I suggest that we reduce the fees in this part of the government, straighten out these relations and help enterprises develop better.

Reducing value-added tax is conducive to stimulating domestic demand. In addition to reducing value-added tax, what are the ways and means to stimulate domestic demand? What are your suggestions for stimulating domestic demand?

Li Dongsheng: to stimulate domestic demand, tax cuts can reduce commodity prices and boost demand.

Another important thing is to increase the income of ordinary consumers and residents.

In his report on the work of the government, the prime minister mentioned the need to increase the proportion of residents' income in the national economy, and to increase the proportion of workers distributing all kinds of income at the same time.

This formulation has been put forward for several years. In my view, all sectors of society, including the government, are also actively promoting. In recent years, the wage income of employees has increased considerably, and the social security coverage has been more perfect, so that we can have a clearer expectation for the future and be able to spend more money at the present time. These should help improve domestic demand.

We can see that in the past few years, the demand growth in the domestic market is actually higher than that of GDP, which is a good phenomenon.

As long as we follow this trend, I believe the domestic demand market will play an increasingly important role in the economic development of our country.

I want to know the export situation of current household appliances to Li Dong. Because of the foreign trade situation, we all feel that the European Union may be in a very depressed economy.

Li Dongsheng: Europe's exports are not very good this year, but the export of the US market is still stable.

In emerging markets, the export growth of developing countries is still quite large.

So from our business situation, last year, we export this piece increased by 14%.

In 1 and February this year, I estimate that this increase should be slightly higher than last year.

Therefore, in the electronics and home appliances industry, I think the export is fairly healthy and should be an important driving force for the development of the industry.

Chinese enterprises are generally considered to be lacking in one kind.

Li Dongsheng: precisely speaking, Chinese enterprises do not lack the spirit of innovation.

In the past, many enterprises were not very innovative.

Because innovation capability is based on the technological capability of the enterprise itself, if you don't do well in basic industrial technology and product technology, you can talk about innovation again. I think that's unlikely.

But after more than 30 years of development, there is still a gap between Chinese enterprises and the world's leading enterprises, but this gap has been greatly reduced.

So today, when I talk about innovation, I believe that our hearts are more emboldened.

At present, we rely on our own strength in the development of products, and we have been able to catch up with the advanced level of the world.

Like other foreign counterparts, a new concept technology product is launched. Chinese enterprises can also be launched almost at the same time.

In addition, some of our basic technological capabilities have been gradually established.

Over the past few years, domestic chip factories and domestic LCD panel factories are all key and core technological capabilities.

The establishment of these capabilities can also help improve the innovation capability of Chinese enterprises.

But comparing apple, Samsung, SONY and Panasonic as the leading international giants, we really need to redouble our efforts.

I believe that in the next 5-10 years, excellent Chinese enterprises will make breakthroughs in some new application technologies and some core product technology development.

What I am saying is that in the next 10 years, some Chinese enterprises will be able to develop products like Apple's iPhone and iPad, and develop innovative and disruptive revolutionary products like Samsung, and develop revolutionary innovative products like SONY and Panasonic. I don't think this time will be too long.