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On 24 March, Finance Minister Liu Kun said at the annual meeting of the High Level Forum on Development in China in 2019 that the implementation of a major reduction in taxes and more obvious reductions in fees this year will reduce corporate taxes and the burden of social security by almost 2 billions of yuan. It will be significantly more than last year.
At the same time, this year, which is influenced by factors such as downward pressure on the economy and the implementation of tax cuts and reductions, Liu Kun said that the growth rate of fiscal revenues will slow down this year, while fiscal expenditure is rigid and the pressure on the balance of payments is relatively high.
Liu Kun emphasized that he will accelerate the issuance and use of local government bonds and strive to unlock a new 3,08 trillion yuan government debt limit by the end of September, while urging local authorities to accelerate the disbursement of funds and timely use of them for projects. Positive role of local investments for stabilization and growth of domestic demand.
This year's load reduction will be significantly higher than last year.
Liu Kun said that the implementation of a major tax cut and more obvious reductions this year will reduce corporate taxes and the burden of social security for almost 2 trillion yuan, while the intensity will be significantly higher than last year.
This year, we need to introduce an improvement in the income tax threshold and six specific additional deduction policies to reduce the tax burden on the working class and increase the consumption capacity. The promotion of more obvious reductions is mainly due to the reduction in the share of basic units of non-life insurance for urban workers, which can be reduced to 16%. Continue to implement a gradual reduction of unemployment policy and insurance for injuries at work, and continue to clean the standardization of fees for businesses.
The rapporteur drew attention to the fact that on 21 March the Ministry of Finance, the State Tax Administration and the General Customs Administration jointly issued a "Value Added Tax Promotion Notice", and since 1 April VAT taxpayers have been subject to VAT. For the behavior or imported goods, if the original tax rate is 16%, the tax rate is adjusted to 13%, if the original tax rate is 10%, the tax rate is adjusted to 9%.
Liu Kun said that the implementation of a major tax cut, the deepening of VAT reform, the current tax rate of 16% and 10%, declined to 13% and 9% respectively, to ensure that major industries, such as the tax burden on the processing industry, are essential reduce and retain 6% The tax rate of the file is unchanged, but with the adoption of complementary measures, such as increasing tax incentives for the production and food industries, it is ensured that the tax burden on all industries is reduced and continues to move towards the simplification of the tax system.
Liu Kun believes that this year's inclusive tax cuts and structural tax cuts focusing on "water and aquaculture", increasing development potential and taking into account fiscal sustainability, are important measures to reduce the burden on businesses and promote the vitality of the market. An important reform of the tax system and the optimization of the pattern of income distribution is the main choice for macroeconomic policies that support stable growth, job security and structural adjustment.
Continue to increase the volume of investments in central infrastructure
How to ensure fiscal expenditure and reduce taxes and fees? Liu Kun said that the volume of fiscal expenditure should be moderately expanded to encourage the creation of a strong domestic market. On factors such as downward pressure on the economy and the implementation of tax cuts and reductions in fees, the rate of fiscal revenue growth will slow down this year, while fiscal expenditure will be rigid and the pressure on the balance of payments will be relatively high.
Liu Kun said that by coordinating income, deficits and calling the budget to stabilize the fund, and by implementing central and local reductions in general expenditure and recovering long-term assets, the budgetary expenditure for this year will exceed 23 trillion yuan, which is 6.5 percent more . %. Central government repayments increased by 10.9%. The budget deficit amounted to 2.76 trillion yuan, which is 380 billion yuan more than in 2018. The deficit rate has moderately increased from 2.6% to 2.8%. We also arranged special local government bonds of 2.15 trillion yuan, which is 800 billion yuan more than in 2018.
Regarding the progress in issuing local bonds, Liu Kun pointed out that the issuance and use of local bonds should be accelerated, and by the end of September, a new local government debt limit of 3.08 trillion yuan was issued, while urging local authorities to accelerate the allocation of resources and use them in a timely manner. Within the framework of the project, we will take full advantage of the positive role of local investments in stabilization and increasing domestic demand.
Liu Kun emphasized: "In the face of the pressure of the balance of payments, we will firmly establish the bottom line, stick to the pressure to maintain, optimize the structure of expenditure, use limited resources at the very top, focus precisely and increase support for the entire economic and social development of the country. Ability. "
Liu Kun also said that due to the pressure on the declining economy, active fiscal policy is focused on stimulating consumption, stabilizing investment and unlocking the potential of domestic demand. Continue to increase the volume of investments in central infrastructure and optimize the direction and structure of investments. Focus on supporting affordable housing projects, greater infrastructure, etc., Adapt to the consumption of services in order to accelerate new trends and support the expansion of education, culture, sports, pensions, health services and other services. Continue to support the development of the new energy car industry, to support the expansion of rural consumption and to promote new points of growth in consumption.
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