China'S Economic Growth Potential Remains Optimistic. Many Tax Cuts And Fees Will Reach Trillions.

Since the beginning of this year, fiscal policy has stepped up its efforts. On the one hand, tax cuts and fees have frequently been sent out of the "big package". The structural tax reduction efforts and effects have shown up. On the other hand, fiscal expenditure has maintained two digit growth, and it has made precise efforts to highlight the focus of people's livelihood protection.

Experts predict that the positive fiscal policy will continue to intensify in the second half of this year, and the dividend burden will be released in the second half of the year.

Including the simplification of the VAT structure, the pre Tax Deduction Policy for commercial health insurance, the individual income tax deduction policy will be pushed to the whole country, temporarily exempt from banking supervision fees and insurance regulatory fees and so on. The new deal will be implemented from July 1st.

Since the beginning of this year, the State Council has held four executive meetings to deliberate and adopt a number of measures to reduce taxes and reduce costs.

Specifically, in terms of tax reduction, including simplifying the structure of value-added tax rate, expanding the scope of small profit enterprises such as enjoying preferential corporate income tax, and so on, in order to reduce fees, a number of policies have been put forward to clean up and standardize a batch of charges related to enterprises, reduce unemployment insurance premiums at a stage, speed up the cost reduction of the network, and reduce the cost of energy consumption of enterprises.

These measures can reduce the burden on enterprises by about 718 billion yuan a year.

A few days ago, the executive meeting of the State Council also deliberated and adopted policies and measures to further clean up the government fees charged by enterprises, including clearing up the standard deposit in the field of engineering construction, cleaning up the regulation of non tax revenue in the energy sector, and temporarily exempting banking and insurance regulatory fees during the "13th Five-Year" period, and reducing six administrative functions.

And so on.

According to the Ministry of Finance estimates, the above four reduction measures can reduce the enterprise's annual burden of about 283 billion yuan, plus the previously defined tax reduction and reduction cost of about 718 billion yuan. The total annual reduction of the enterprise burden is about 10010 billion yuan, and the target of reducing taxes and reducing taxes by more than 1 trillion yuan per year is achieved.

It is reported that after continuous clean-up and regulation, since the current government, the central government has set up administrative and institutional fees from 185 to 51, with a reduction of more than 72%. Among them, the fees related to enterprises have been reduced from 106 to 33, and the reduction has been more than 69%; government funds have been reduced from 30 to 21, with a reduction of 30%.

The administrative and institutional fees charged by provinces (autonomous regions and municipalities) have also been greatly reduced.

Deng Yong, director general of the State Administration of taxation income tax, explained the six tax reduction policies adopted by the Executive Council of the State Council in April 19th in an interview with the Chinese government website. The six tax reduction policies covered three categories of goods and services tax, income tax and property duty tax.

Companies that have lost dividends and benefit also say that the "gold content" of reducing tax cuts is high.

Taking the devaluation tax rate that will be formally implemented in July 1st as an example, Cao Yingcai, the legal representative of Dongxing agricultural and sideline products processing Co., Ltd., Guangzhou, told reporters that "the new policy has abolished the value added tax rate of 13%, and 11% of the original 13% tax rate applies.

It is expected that the company will earn 15 million yuan in the second half of 2017. According to this policy, the output tax will be reduced by 300 thousand directly before adjusting the tax rate.

Zhang Lianqi, a member of the CPPCC National Committee, a member of the internal control committee of the Ministry of Finance and a managing partner of Ruihua certified public accountants office, said that in the face of the anniversary of the promotion of the camp reform and increase pilot program, China has issued new measures such as devaluation and tax reduction.

This will release a more firm signal to reduce costs for the real economy, and it will also show our country's fiscal and tax system reform to boost the economic pformation and upgrading of the chess game.

Expand expenditure and protect key points.

Affected by factors such as tax reduction and fee reduction, fiscal revenue growth continued to bear pressure this year, but expenditure has maintained a two digit growth, ensuring that the intensity of fiscal expenditure has not been reduced and the scale of actual expenditure has expanded.

According to statistics from the Ministry of finance, the total public budget expenditure of the whole country from 1 to May this year was 76467 billion yuan, up 14.7% over the same period last year.

Among them, the central general public budget expenditure at the level of 11166 billion yuan, an increase of 9.2% over the previous year, the local general public budget expenditure of 65301 billion yuan, an increase of 15.7% over the same period last year.

From the perspective of major expenditure projects, people's livelihood expenditure on education, social security and medical care has increased significantly, reflecting increasing efforts to make up for shortcomings and improve people's livelihood.

This year's budget report has also made detailed arrangements for people's livelihood expenditure: in terms of education expenditure, the policy of "two exemption and one subsidy" for urban and rural compulsory education students has been unified since the spring semester. In terms of social security and employment, the pensions standard for retirees has been raised appropriately. In terms of medical and health care, the standard of financial assistance and personal payment for basic medical insurance for urban and rural residents has increased by 30 yuan, reaching 450 yuan and 180 yuan per person per year, respectively.

It is precisely this year's fiscal policy to ensure that expenditure is "positive and effective".

As scheduled in this year's budget report, the additional financial resources and the funds allocated for adjusting the stock will give priority to supporting the structural reform of the supply side, moderately expanding effective demand, and increasing investment in key areas such as basic livelihood security, poverty alleviation, agriculture, education and ecological civilization construction, so that financial resources can be further tilted to the difficult areas and grass-roots units, so as to better play the effectiveness of the use of financial funds and enhance the financial support for basic public services.

Jiang Zhen, an associate researcher of the China Academy of Finance and economics, said that in the first half of the year, China's traditional economic growth momentum structure was optimized, the contribution of consumption to economic growth was significantly improved, industrial efficiency improved and the revitalization of the real economy continued to grow.

The results of the innovation driven strategy are remarkable, and the development of new formats, new models and new economy has been accelerated. This is due to the role of fiscal policy in promoting consumption, productivity, deleveraging, and promoting innovation.

Starting from July 1st, the pilot policy on tax deduction for value-added tax and pre tax deduction for commercial health insurance personal income tax will be pushed to the whole country, and a number of new tax reduction and fee reduction policies will be implemented.

No doubt, a package of new tax reduction measures will be concentrated in the second half of the year, and the dividend burden will continue to be released.

It is undeniable that reducing taxes and lowering fees will bring obvious burden reduction effect to enterprises, and at the same time, it will also reduce the revenue of government revenue.

According to the Ministry of finance statistics, from 1 to May, the national general public budget revenue was 77224 billion yuan, an increase of 10% over the same period last year.

Among them, the national general public revenue in May was 16073 billion yuan, an increase of 3.7% over the same period last year.

In May, the growth of fiscal revenue was relatively low. Apart from the slowdown in the relevant economic indicators and the impact of the high income base in the same month last year, an important reason is that the policy effect of tax reduction and tax reduction is further apparent.

Zhang Shaochun, Vice Minister of finance, has said that with the enhancement of the adaptability of the enterprises to the camp to increase, the effect of tax increase and tax reduction will be more and more obvious. With the implementation of the new tax reduction and reduction measures this year, the pressure of late tax reduction will be greater.

Zhang Shaochun pointed out that the next step is to implement a positive fiscal policy.

On the basis of simplifying the tax and fee reduction measures such as simplifying the structure of VAT rates, we implemented policies and measures to further lighten the burden on enterprises.

We should strengthen the management of budget execution, ensure that the budget can be used in time and avoid "money and other items".

In addition, we should further push forward the structural reform of supply side.

It includes continuing to support the workers in the steel and coal industry to solve the problem of excess capacity, and the central enterprises to deal with "zombie enterprises".

Prevent and solve the risk of overcapacity of coal and electricity.

We should improve the inclusive financial policy and encourage more credit funds to enter the real economy.

Industry experts pointed out that this year's budget arrangement has kept the deficit rate unchanged, and has increased the size of the deficit. It has taken into account the impact of tax cuts and tax cuts on fiscal revenue.

On the other hand, reducing taxes and lowering fees has reduced the burden on enterprises, increased the vitality of economic entities, and increased the tax revenue brought about by the expansion of business activities.

Jiang Zhen said that at present, China's economic growth potential remains optimistic in the second half of the year, but the stability of growth is noteworthy, and fiscal policy will continue to be strengthened to consolidate.

In his view, stimulating private investment and deleveraging should be a key aspect of fiscal policy.

Specifically, the first is to stimulate the vitality of private investment. "In the first half of the year, the power of private investment is insufficient, the fundamental reason is that the rate of return on investment is insufficient."

He said.

Two, we should start with optimizing the leverage structure to resolve the high leverage risk of the government and enterprises.

He also pointed out that government and social capital cooperation (PPP) is indeed an important way to start private investment, but also to solve the problem of asymmetric demand and supply. We must build a strong investment return mechanism to stimulate the willingness of private investment.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.