Tax reduction is still the focus of cost reduction, manufacturing VAT rate reduction, etc.

Abstract Since the beginning of this year, the State Council has carried out several deployments on cost reduction measures such as tax reduction and fee reduction. Various departments have also issued a number of policies, and local cost reduction programs are also intensively introduced. According to the preliminary statistics of the "Economic Information Daily" reporter, 25 provinces have already issued &ldq...
Since the beginning of this year, the State Council has already deployed many measures such as tax reduction and fee reduction, and various departments have also issued a number of policies. At the local level, cost reduction programs are also being introduced intensively. According to the preliminary statistics of the "Economic Information Daily" reporter, 25 provinces have introduced specific plans for "cost reduction". A series of initiatives will reduce the cost of the company by at least 700 billion yuan this year. The reporter learned that in the next step of reducing the cost of policy reserves, the tax reduction will continue to be the focus, including reducing the manufacturing VAT rate and other initiatives are brewing.
Among the cost reduction measures that have been introduced so far, the tax reduction and fee reduction can be said to be the strongest. Only on May 1st, the comprehensive reform of the camp will increase the estimated tax reduction by 500 billion yuan, which is the biggest tax reduction measure of the current government. In terms of fee reduction, after the State Council reduced the three insurance premium rates in the social security five insurances last year, this year, the social insurance premium rate and the housing accumulation fund contribution ratio were again reduced. According to preliminary estimates, these measures can reduce the burden on enterprises by more than 100 billion yuan each year.
In addition, this year's tax reduction and removal measures include: from February 1st, the cleanup and regulation of a number of government fund charging projects, is expected to reduce the annual burden of enterprises by about 26 billion yuan; from May 1, expand 18 The scope of exemption for administrative fees; the reduction of electricity prices twice can reduce the burden of industrial and commercial enterprises' electricity expenses by about 47 billion yuan; from September 6, the bank card fees will be greatly reduced.
In addition, the province's “cost reduction” specific programs also refer to high taxes and fees.
Among them, the “Supply-side Structural Reform Cost Reduction Action Plan (2016-2018)” issued by Guangdong Province shows that the province is expected to reduce the tax burden cost of enterprises to more than 50% of the total scale of the burden reduction. Shandong Province issued the "Opinions on Reducing the Tax Fees and Fees of Enterprises and Reducing the Cost of Financial Expenditure" for tax reduction. According to preliminary calculations, the total amount of enterprises in the province can be reduced by more than 200 billion yuan.
In fact, the call for the corporate world has been strong for further tax cuts, especially for the manufacturing industry. The 2015 National Enterprise Burden Survey and Evaluation Report released by the China Small and Medium Enterprises Development Promotion Center shows that the respondents are required to issue the “tax reduction” policy, and the proportion of enterprises that reflect this demand is 80%.
“The focus of reducing the burden of corporate taxes and fees is on value-added tax.” Jiang Zhen, an associate researcher at the Institute of Finance and Economics of the Chinese Academy of Social Sciences, told the “Economic Information Daily” that the burden of corporate taxes and fees, especially the burden of turnover tax, has increased the enterprise. The difficulty of entrepreneurial innovation is not conducive to the realization of the goal driven by the 13th Five-Year Plan.
He pointed out that after the "reform of the camp", the task of deepening the VAT reform is even bigger. From the experience of international VAT practice, many countries have a 1-2 tax rate, which is ideal. At present, China's service industry and manufacturing industry are multi-rate tax rates. The gap between industries is large. The reduction of VAT rate, especially the manufacturing VAT rate, is undoubtedly a suitable method to reduce corporate tax burden.
Li Quan, a researcher at the China Academy of Fiscal Science, told reporters that after the implementation of the policy on the reform of the camp, the VAT rate is implemented on a five-tier system (ie, 17%, 13%, 11%, 6%, and 0), plus a levy rate of 3%. The high tax rate is likely to lead to a smooth VAT deduction, which may lead to new policy pressures and pressure on collection and management. Therefore, "considering the current high value-added tax rate in China, we must continue to deliberate these tax rates. Of course, the implementation time should be considered in accordance with the comprehensive operation and timing of the value-added tax."
Yang Zhiyong, a researcher at the Institute of Finance and Economics of the Chinese Academy of Social Sciences, also pointed out that the ideal VAT rate should have only one basic tax rate. Taking into account the actual needs, the VAT rate can still choose a basic tax rate plus a low tax rate, and choose a reasonable tax exemption range. Based on the fact that the VAT rate in the Asia-Pacific region is low, the basic tax rate is finally set at around 10%, and the low tax rate is set at around 5%. The collection rate should also be set at only one grade, which is set at about 3%.
Huang Zhiling, chief economist of China Construction Bank, told the Economic Information Daily that the main contradictions facing the Chinese economy are low-end overcapacity and insufficient high-end capacity. The macroeconomic policy goal is to promote economic upgrading, especially industrial upgrading. Industrial upgrading is subject to technological advancement, equipment technology, better materials, worker quality and labor skills, all of which require extensive R&D investment, equipment upgrades, and labor training. If the policy formulation and operation deviate from the macro intention of “cost reduction”, and even drive the enterprise to reduce the necessary development expenditure to achieve the immediate cost reduction effect, the result can only be to further solidify the low-end production capacity, which runs counter to the goal of industrial upgrading.
In his view, the "cost reduction" as the central government's policy is to help enterprises reduce the unreasonable cost burden from the external environment, rather than rigidly requiring enterprises to reduce the necessary cost. The core point of the government to help companies reduce costs is to play a "combination boxing" in reducing institutional transaction costs, tax burdens, and logistics costs.

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