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    The National Standing Committee Of The People'S Republic Of China Will Launch A Package Of Relief And Assistance Policies To Promote The Steady Growth Of Industries And Difficult Service Industries

    2022/2/21 15:00:00 7

    Policy

    On February 14, Premier Li Keqiang of the State Council presided over the executive meeting of the State Council to determine measures to promote the steady growth of industrial economy and the relief development of service industries with special difficulties.

    The meeting pointed out that industry and service industry play a key role in economic development and employment stability. At present, the situation of stable recovery of the industrial economy is still not firm. Due to the impact of the epidemic situation, there are some special difficult industries in the service industry. In the near future, measures should be taken to strengthen the assistance.

    These include, First, increase the reduction and exemption of industrial and service income tax This year, for the newly purchased equipment and appliances with a value of more than 5 million yuan for small and medium-sized enterprises, a one-off pre tax deduction can be made if the depreciation is 3 years, and the deduction can be reduced by half if the depreciation is 4 years, 5 years and 10 years. We will extend the tax relief policy for small and medium-sized manufacturing enterprises. We will expand the scope of application of the local "six taxes and two fees" exemption policy to all small low profit enterprises and individual businesses.

    Second, to guide and strengthen financial services. The people's Bank of China provided incentive funds to support the increase of inclusive small and micro loans, promoted the rapid growth of medium and long-term loans for the manufacturing industry, and promoted the steady decline of comprehensive financing costs of enterprises.

    Third, we will promote the manufacturing industry to strengthen the chain and rebuild the industrial base, accelerate the construction of new infrastructure, and technological transformation of energy conservation and carbon reduction in key areas, and expand effective investment.

    Fourth, for catering, retail, tourism, transportation and passenger transport and other special difficult industries, we should increase support in the aspects of phased tax relief and partial social security payment, so as to promote stable employment and consumption recovery. In 2022, VAT on public transport services such as public transport and long-distance passenger transport, ferry and taxi will be exempted. Continue to withdraw 80% of the tourism service quality deposit. For small and micro enterprises in the service industry and self-employed industrial and commercial households renting state-owned houses, this year, they are listed as areas with medium and high risk of the epidemic, and the rent in other areas will be reduced by three months. All localities can give appropriate assistance to small and micro businesses and individual businesses renting non-state-owned houses; For the house owners whose rent is reduced or reduced, the house property tax and urban land use tax of this year shall be reduced or remitted according to the regulations.

    The first executive meeting of the State Council after the lunar new year focused on the topic of "stable growth at the beginning of the year". A package of relief and assistance policies included tax reduction, financial support, and investment expansion.

    In 2021, the added value of industries above Designated Size in China will grow by 6.1% on average in two years, which has exceeded the cumulative growth rate of the whole year in 2019 (5.7%). In 2021, the average growth rate of profits of Industrial Enterprises above Designated Size in two years is as high as double digits. However, the high growth of industrial production is due to the faster than expected export growth in 2021. With the recovery of overseas production capacity, China's export is facing greater uncertainty this year. In addition, under the influence of factors such as high-level operation of bulk commodities, lack of core in automobile industry and limited shipping, some industries still have difficulties, and the profits of downstream small and medium-sized enterprises are obviously squeezed.

    As the main force of employment at present, the information industry and financial industry are growing against the trend, but many contact service industries are still affected by the epidemic, including travel, catering, accommodation, retail and other industries. In 2021, the national catering income is about 4.69 trillion yuan, with an average growth rate of 3.9% in two years. Although it has exceeded the level before the epidemic in 2019, the growth rate is relatively low. In 2022, domestic epidemic outbreaks occur from time to time, so it is necessary to strengthen the relief policies for these special industries.

    From the perspective of the State Council's package of policies, tax reduction and fee reduction policies are mostly focused on small and medium-sized enterprises, manufacturing industry, etc. Liu Shangxi, President of the Chinese Academy of financial Sciences, told reporters that at present, the total number of market entities in China has exceeded 150 million, and the number of individual businesses has exceeded 100 million. Activating the vitality of small and medium-sized enterprises is very important to stabilize the macro-economy. At present, the global economic situation is complex and there are many uncertain factors. The supply chain of global industrial chain is in the process of reconstruction, so it is necessary to strengthen policy support for small and medium-sized enterprises.

    Yang Zhiyong, vice president of the Institute of financial strategy, Chinese Academy of Social Sciences, told reporters that the implementation of the new tax reduction and fee reduction policy this year has strengthened support for small, medium and micro enterprises, individual businesses and manufacturing industries, which reflects the intention of the policy to protect market players. New tax reduction and fee reduction policies, such as speeding up the depreciation of equipment and appliances, will promote enterprises to increase their renovation and transformation; Targeted at the service industry, which is seriously affected by the epidemic situation and has large employment capacity, we launched targeted tax reduction and fee reduction measures with precise assistance. In addition, to implement the new and more powerful combined tax reduction and fee reduction measures, we can also consider improving the policy of additional deduction of R & D expenses, increasing the intensity of value-added tax rebate, and so on, so as to promote enterprises to increase R & D innovation.

    The reporter also noted that when the epidemic broke out in 2020, many local governments launched a series of enterprise rescue policies. The most important measure is to promote the rent reduction of state-owned houses, which is a very important relief policy for the small and medium-sized enterprises settled in state-owned parks. At the beginning of 2022, some cities in China had a sporadic epidemic situation. Considering that the epidemic situation may still be repeated, the executive meeting of the State Council made it clear that the rent in high-risk areas would be reduced by 6 months, while that in other areas would be reduced by 3 months.


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