This year's tax cuts and fee cuts or more than 2 trillion enterprises

"It is expected that tax cuts and fee cuts will exceed 2 trillion yuan this year, and enterprises generally reflect a higher sense of satisfaction and satisfaction." Xu Hongcai, Vice Minister of Finance, said yesterday at the International Seminar on Budget Performance Management in 2019. The unprecedented reduction of taxes and fees is one of the important measures in this year's active fiscal policy. Since this year, from the beginning of the year's individual tax, small and micro enterprises inclusive tax relief, to April 1 VAT, May 1 social security premium adjustment, to July 1, a new round of 300 billion yuan fee reduction... A series of tax reduction and fee reduction policies focus on the pain points and difficulties of market participants, and add impetus to high-quality economic development. In the first half of this year alone, a total of 117.09 billion yuan were added and reduced, of which 103.87 billion yuan were reduced.

According to the latest data from the Ministry of Finance, in the first eight months of this year, fiscal revenue increased by 3.2% year-on-year, and the growth rate fell by 6.2 percentage points. Among them, the national tax revenue decreased by 0.1% year-on-year, the first negative growth in the year. In addition, personal income tax fell by 30.1% year-on-year. Local fiscal revenue was also affected. For example, Shanghai's general public budget revenue in the first eight months totaled 560.02 billion yuan, an increase of 0.2% over the same period in 2018. In the first eight months, Beijing's general public budget revenue was 405.19 billion yuan, down 1.4% from the same period last year. Compared with the same period last year, the growth rate of fiscal revenue in the two cities fell by about 7 percentage points.

Chen Jining, Deputy Secretary of the Beijing Municipal Party Committee and mayor, introduced at a news conference held by the new government yesterday that within the scope of local authority, all tax and fee reductions were implemented top-notch in Beijing. For example, the "six taxes and two fees" of small-scale taxpayers should be reduced by a maximum of 50%. In the first eight months of this year, 136.8 billion yuan of new tax and fee reductions were added and reduced. Enterprises and individuals generally benefited. It is estimated that the annual tax and fee reductions will reach nearly 180 billion yuan, ranking first among all provinces (regions and municipalities) in the country. Hongcai believes that while enterprises benefit, the growth rate of government revenue has slowed down significantly, and some local fiscal revenue and expenditure are tight. In this case, we should strengthen budget performance management, vigorously reduce general expenditure, save inefficient and ineffective funds for urgently needed areas, effectively optimize the structure of financial expenditure, and improve the efficiency of the use of financial funds.

Tax reduction and fee reduction play an important role in lightening the burden of enterprises, focusing on "releasing water for fish farming", stimulating market vitality and enhancing development potential. Fu Linghui, a spokesman for the National Bureau of Statistics, said recently that from January to August this year, the value added of industries above scale increased by 5.6% and that of high-tech manufacturing by 8.4%, maintaining a steady and sustained growth trend. In the next stage, there are still many favorable conditions for industrial production to remain stable. The trend of industrial upgrading and development is continuing, and a series of policy effects supporting industrial development are also continuing to show. This year, large-scale tax reduction and fee reduction will provide good support for enterprises.

Tax reduction accounted for 90% of the amount of tax reduction and fee reduction in the first half of this year. With the intensive implementation of the policy in the second half of this year, the efforts of local fee reduction will be significantly increased. A few days ago, 16 inspecting groups of the State Council went to 16 provinces (districts and municipalities) to conduct on-site inspections, including special inspections on tax reduction and fee reduction. This also means that the government's efforts to implement tax cuts and fee reductions will not weaken.