A New Round of 300 bn Fee Reduction Starts the Acceleration of Tax Reduction

On July 1, a new round of 300 billion yuan scale fee reduction measures officially landed in China. As an important part of reducing the tax burden of nearly 2 trillion yuan for enterprises and the masses this year, a new round of cost reduction has attracted much attention. The executive meeting of the State Council held on April 3 this year made it clear that, following the reduction of the social security premium rate, a package of fee reduction measures, including the reduction of fees charged by administrative and public institutions, will be further launched from July 1. It is expected that the annual burden will be reduced by more than 300 billion yuan for enterprises and the masses.

According to the deployment of the State Council, the current round of fee reduction measures include: reducing the fee standard for registration of real estate ownership from 550 yuan to 80 yuan per garage, parking space, etc., reducing the fee standard for registration of trademark renewal from 1000 yuan to 500 yuan, and reducing the fee standard for entry-exit passports such as private ordinary passports, etc. As well as reducing the collection standard of the national major water conservancy project construction fund and civil aviation development fund by half, and levying cultural construction fees by half to enterprises and institutions affiliated to the central government by the end of 2024, etc. It also includes measures to reduce mobile network traffic and broadband charges for SMEs, to reduce average electricity prices for general industry and commerce, to implement freight rates for floating railway goods, to reduce port charges, and to cancel the fees for Citizenship Information authentication.

In terms of clearing up government charges, reducing electricity prices, transportation (railway, civil aviation) costs, reducing network traffic charges, and halving the construction fees of cultural institutions, relevant departments and many places have made corresponding deployments. Since July 1, the entry-exit administration departments of the national public security organs have lowered the fee rates for ordinary passports and Hong Kong-Macao passports from 160 yuan to 120 yuan per passport, and for Hong Kong-Macao passes from 80 yuan to 60 yuan per passport. The dividend of tax reduction and fee reduction has begun to appear. According to the latest data from the State Administration of Taxation, from January to May this year, a total of 893 billion yuan of new tax and fee reductions were added and reduced nationwide, including 816.8 billion yuan of new tax reductions and 76.2 billion yuan of new social security premiums reductions. A series of tax and fee reductions policies, such as deepening the reform of value-added tax and individual tax, concentrated their efforts to effectively promote high-quality economic development. According to the introduction of, new tax increases and decreases from January to May mainly consist of three parts: new tax cuts of 351.1 billion yuan in 2019, including new tax increases and decreases of 221.8 billion yuan in deepening the reform of value-added tax, new tax cuts of 91.7 billion yuan in the inclusive policies of small and micro enterprises and special additional deductions of personal income tax, and no further payment of 109 million people's salary income. In 2018, 460.4 billion yuan was added and reduced in 2019, and in 2019, 5.3 billion yuan was added and reduced in 2019 after the expiration of 2018. Experts point out that since this year, measures to reduce the burden of individual taxes and fees, including VAT, individual tax reduction and social security premium reduction, have begun to show dividends in various fields. It can be expected that with the landing of a new round of 300 billion yuan fee reduction measures, more dividends will be released.