Premier Investigates The Latest Progress In Tax Cuts: It Is Expected That Only VAT Will Exceed 850 Billion.

In order to promote the substantial tax reduction of value added tax, following the State Council executive meeting in March 20th, it made clear the supporting measures for value-added tax reduction. In the afternoon of March 21st, Premier Li Keqiang went to the Ministry of Finance and the State Administration of Taxation to investigate and investigate the latest progress of the larger scale tax reduction in order to stimulate the two sectors.

Subsequently, the Ministry of finance, the State Administration of Taxation and the General Administration of Customs jointly issued the "notice on deepening the reform of value-added tax". The State Administration of Taxation issued the notice on deepening the reform of value-added tax, the work plan for deepening the value-added tax reform in 2019, and the notice on "deepening the value-added tax reform" in the first stage of "vowing for good votes" in 2019, and Issuing the export tax rebate -1.html >

Notice of "2019B version of rate library" and "notice on adjusting VAT declaration."

Huang Zhilong, director of the center for macroeconomic research of Suning Financial Research Institute, told the Securities Daily reporters that the tax reduction and reduction scale in 2019 was nearly 2 trillion yuan, and the value-added tax rate reduction is undoubtedly the main measure of the tax reduction policy. According to the estimated value added tax rate reduction and additional deduction, the scale of tax reduction may reach 800 billion yuan.

Zhang Yiqun, deputy director of China's budget performance special committee, told the Securities Daily reporters that this year's tax cuts are unprecedented. It is estimated that only value-added tax reduction will exceed 850 billion yuan.

Zhang Yiqun said that in addition to implementing the preferential tax reduction for reducing the value-added tax rate of the manufacturing and pportation industry, the tax reduction policy for further expanding the scope of input tax deduction is also implemented. It can be said that the expansion of the input tax deduction range is a "point to point" precision tax reduction measure for specific sectors of the industry and management.

The notice issued by the three sector stipulates that the VAT general taxpayer (hereinafter referred to as the taxpayer) has the duty of selling 16% or 13% of the value added tax taxable sale or import goods, and the tax rate is adjusted to 13%. The original 10% tax rate is adjusted to 9%.

Taxpayers who purchase agricultural products used for production or entrustment processing 13% tax rate shall calculate the input tax according to the deduction rate of 10%.

The export tax rebate rate, which originally applies to 16% of the tax rate and the export tax rebate rate is 16%, is adjusted to 13%; the export tax rebate rate of the original 10% tax rate and the export tax rebate rate of 10% is adjusted to 9%; the export tax rebate rate of the foreign tax passengers who apply for 13% tax rates is 11%; the tax rebate rate applicable to 9% passengers with foreign tax rebates is 9%.

In response, Zhang Yiqun said that adjusting the export tax rebate rate of some goods services and the deduction rate of the purchase of agricultural products should be adjusted accordingly. The use of import and export tax rebate adjustment would help stabilize and expand the export of goods service trade, help increase imports of agricultural products and other national necessities, and play an effective role in adjusting and optimizing the industrial structure and improving the quality of life of residents.

The notice is clear that since April 1, 2019, taxpayers' income tax on real estate or real estate in construction projects will no longer be deducted in 2 years.

Zhang Yiqun believes that the tax earned by taxpayers in real estate payment can be changed from two years deduction to one-off full deduction, increasing taxpayers' deductible input tax in the current period, reducing the number of deductions to facilitate the enterprise's tax accounting, and more importantly, it can stimulate enterprises' willingness to invest independently, expand production and improve technology.

The notice stipulates that taxpayers who purchase domestic passenger pport services may deduct the input tax from the output tax.

Zhang Yiqun said that passenger pport services should be included in the deduction to expand the scope of deduction, which would help to promote passenger pport industry to increase passenger flow, improve services, reduce costs, improve quality and improve efficiency.

The announcement clearly stated that from April 1, 2019 to December 31, 2021, taxpayers of production and living service industries were allowed to deduct the amount of tax payable in accordance with the current deductible deduction tax rate of 10%.

Zhang Yiqun said that taxpayers whose main business is postal service, telecommunications, modern service and life service industry will deduct 10% of the tax payable according to the input tax. Tax reduction can benefit the ordinary people.

Since April 1, 2019, the tax refund system for value-added tax has been tried out at the end of the year.

In this regard, Zhang Yiqun believes that after the implementation of the policy, the new tax allowance for taxpayers will be refunded in accordance with the relevant regulations, which is equivalent to a clear provision for the value added tax levy after tax reduction. The implementation of tax refund is beneficial to better fund enterprises, reduce financial expenses and ease the financial difficulties of enterprises.

In addition, the program innovating and integrating has launched 20 hard measures, requiring all tax authorities to widen the local "run up" list in various ways and deepen the VAT reform in order to ensure that the VAT taxpayers open the tickets in April 1st and declare smoothly in May 1st.

The General Administration of Taxation will organize the demand survey of taxpayers in a timely manner, covering 1 million small and micro enterprises nationwide, and understand the implementation of tax reduction and tax reduction policies.