Reasons for the implementation of tax reduction and fee reduction policy

Reasons for implementing the tax reduction and fee reduction policy in China (1)

Domestic reasons (1)

The smooth completion of the supply-side structural reform cannot be separated from the policy support of tax reduction and fee reduction. The goal of China's supply-side structural reform is to improve supply efficiency, optimize economic structure, and then promote sustained economic growth. There is a demand side for products, and the supply side is mainly enterprises. Therefore, the improvement of economic profits of enterprises is conducive to improving the quality and efficiency of supply, and tax reduction is an effective way to stimulate the development of enterprises' production. The "tax reduction and fee reduction policy" has reduced the burden on enterprises, improved the quality of government fiscal and taxation services, improved the business environment, and promoted the improvement of industrial structure, which is conducive to the completion of supply-side reform tasks and stable economic growth. (2)

The concept of economic development has changed, paying more attention to economic quality. After more than 4 years of economic development, the economic level has been significantly improved, and the main social contradictions have also changed. Therefore, our people have a higher pursuit of life. The government's concept of economic development is not to blindly pursue economic speed, but to pay attention to environmental protection, actively guide technological innovation of enterprises, and improve the quality of economic growth. This means that our government will pay attention to both high-quality economic growth and harmony with nature in the future. The so-called "green mountains and green hills are the golden mountains and silver mountains". Now, China's requirements for enterprises are no longer to expand production on a large scale and improve their profits, but to encourage enterprises to adjust their production structure, reduce energy consumption and develop in a green, efficient and innovative direction. Therefore, China has implemented a new tax policy to stimulate the transformation and upgrading of enterprises and promote high-quality economic development. (3)

Overcome the economic impact of COVID-19 epidemic, and help enterprises to resume work and production. At the beginning of 22, China was affected by the COVID-19 epidemic, and the production activities of most enterprises in the country were suppressed, and the catering, tourism, hotel accommodation and traffic were also restricted, which seriously impacted the domestic economy, severely damaged the service industry, and small and micro enterprises were on the verge of bankruptcy. At this time, the government needs to help, and tax incentives are a good coping tool. Therefore, during the epidemic, it is a top priority to help enterprises resume work and production. Therefore, China has introduced a series of targeted tax reduction policies to help enterprises resolve the impact of the epidemic. However, the preferential tax policies given during the epidemic period are short-lived. If enterprises want to continue to resume production and improve operating profits, they need the government to further formulate and implement a proactive fiscal policy. Especially now, Covid-19 has not been eliminated from the world, and the import and export of enterprises are still limited. Therefore, in order to promote the development of enterprises, the policy of tax reduction and fee reduction should continue to be promoted. (B) < P > International reasons (1)

The global economic growth is slow, which requires a proactive fiscal policy to stimulate economic recovery. In recent years, the global economic growth has been relatively slow, and in 22, it was affected by the COVID-19 epidemic. Among the major economies, only China achieved positive economic growth. The OECD predicts that the global economic growth rate will increase to this year, and the economic recovery cannot be separated from the active financial support of various countries. Moreover, China's economy is accompanied by multiple risks in its operation, so it is necessary to strengthen risk prevention and control with active financial policies to support the sustained and stable operation of China's economy. Therefore, China's tax reduction policy has been constantly updated and improved since 28, and the intensity of tax reduction is getting bigger and bigger, which directly stimulates social and economic vitality. Although the global economy is growing slowly, it is also under the condition of gradual economic recovery. China's private investment has begun to recover since 216. Under the condition of continuous release of tax reduction and fee reduction dividends, the macro tax burden of the whole society has decreased, and the production environment of Chinese enterprises has been continuously improved. (2)

The tax reduction policies of various countries in the world have been introduced one after another, which has triggered international tax competition. From a global perspective, the large-scale tax reduction bill implemented by the United States aims to attract investment back, increase jobs and stimulate economic growth. Some European countries, such as Britain, France and Germany, are also planning or implementing tax reduction policies. Other countries are also joining the global tax reduction wave one after another. Britain plans to reduce the corporate income tax rate by less than 15%, while France plans to specify. The tax reduction policies of these countries have played an important role, reducing the burden on domestic enterprises, improving international competitiveness and inspiring investors' confidence. In the global tax reduction atmosphere, China has formulated a tax reduction policy suitable for the national conditions because of the situation and the situation. Tax reduction and fee reduction can reduce the burden on enterprises and individuals, increase the profits of enterprises and improve disposable personal income. As a result, the production scale of enterprises will be expanded, jobs will be increased, personal consumption capacity will be enhanced, foreign capital will be attracted, fiscal revenue will be increased, and the healthy development of China's economy will be stimulated. (3)

The global trend of economy has been blocked, and Sino-US trade disputes have been going on since the reform and opening up. China has actively participated in the wave of globalization and deeply participated in international economic exchanges, so China's economic level has been greatly improved in the past 4 years. However, globalization is a double-edged sword, which has both opportunities and challenges. Each country has different national conditions and different benefits in the process of globalization. Moreover, in recent years, global economic growth has been slow, and some countries have been affected by factors such as unemployment and widening gap between the rich and the poor, which has intensified the trend of anti-globalization. In particular, the global outbreak of the COVID-19 epidemic in 22 caused a serious impact on the economies of various countries, and trade protectionism took advantage of the chaos. Some countries not only refused to promote international cooperation, but launched international organizations to create trade frictions and engage in trade protectionism, further strengthening the anti-globalization trend. In the process of facing the trend of anti-globalization, China was influenced by the trade dispute provoked by the United States. In 218, the United States imposed tariffs on goods imported from China. In order to fight back, China also imposed tariffs on American products. This trade war is in a seesaw state, which has adversely affected the economic development of both countries. Therefore, China should first stabilize the domestic economy, formulate targeted economic policies and deal with external economic pressures. Therefore, it should continue to promote the policy of tax reduction and fee reduction, accelerate the reform of fiscal and taxation system, promote the optimization of China's industrial structure, and stabilize the domestic economy to cope with the negative impact brought by trade disputes and anti-globalization. Ii.

content of tax reduction and fee reduction policy in China (I)

structural tax reduction in the first stage in 28, in order to alleviate the economic impact suffered by China, "structural tax reduction" was first proposed. The so-called structural, that is, the scope of tax reduction is focused, and it is the tax burden adjustment for specific industries and specific enterprises. At this time, the main contents of tax reduction are: first, expanding investment. Realize the merger of enterprise income tax and value-added tax of domestic and foreign-funded enterprises from "production type" to "consumption type" in an all-round way, so as to encourage enterprises to increase technological investment and actively innovate; Give some care to small-scale taxpayers, and appropriately reduce their VAT increase rate to reduce the operating burden of small enterprises; Levy stamp duty unilaterally and lower its tax rate to improve the efficiency of the capital market. Second, adjust the economic structure. We will give preferential income tax policies to enterprises developing the western region, give preferential tax policies to integrated circuits, software and other related industries, and increase the export tax rebate rate for high-tech products, hoping that this way can promote the upgrading of China's industrial structure and change the export mode. Third, improve people's livelihood. Optimize the tax deduction standard, expand the application scope of the lower tax rate, and implement preferential tax policies for the reemployment of laid-off and unemployed people and difficult groups to improve their income level. (II)

The second phase of the reform of the camp, tax reduction, was officially launched in China on January 1, 212. The first place was Shanghai, and the pilot industries were transportation and some modern service industries. With the promotion of the pilot work, the reform of the camp was gradually extended to other regions. Until May, 216, the reform of the camp was fully implemented in China, and the collection scope of value-added tax was extended to the fields of construction, finance and life services. (iii)

The third stage of larger-scale and inclusive tax reduction began in 218. In terms of tax reduction and fee reduction, China has introduced a series of measures, the most important of which is to deepen the reform of value-added tax, including lowering the rate of value-added tax, readjusting the standards of small-scale taxpayers, and returning the end-of-term tax credits of some industries at one time, so as to improve taxpayers' sense of tax reduction with real feelings. In 219, the reform of value-added tax was further intensified. The tax rate and deduction rate of some industries were reduced again, the export tax rebate rate was adjusted, the deduction method of real estate and the additional deduction of some industries were changed, and the tax burden of taxpayers was reduced. The taxable income of small and micro enterprises enjoying preferential corporate income tax is further raised to 1 million yuan, and the pre-tax deduction of R&D expenses for enterprises is increased to improve their scientific and technological investment and innovation enthusiasm. At the same time, the major changes in individual tax reflect the inclusiveness of this reform, raising the basic expense deduction standard for wages and salaries, optimizing the tax rate structure, and increasing special deductions. Moreover, this individual tax reform is the first step towards comprehensive collection, releasing a stronger signal of inclusiveness.