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Premier: Allow enterprises to compete with fewer burdens

Updated: Jul 3,2017 9:43 AM

China is sparing no efforts to reduce taxes and fees, with the aim of easing burdens for enterprises and enhancing competitiveness, said Premier Li Keqiang at teleconference on streamlining administration, combining power delegation with enhanced supervision and optimizing services.

According to the Premier, thanks to the reform, corporate costs have been cut by more than 2 trillion yuan from 2013 to 2016, and this year alone the number will reach over 1 trillion yuan.

The new measures concerning tax cuts include simplifying the value-added tax structure, expanding the scope of small and micro enterprises that are eligible for tax cut incentives, and raising the proportion of pre-tax deductions for innovation-based tech firms. A batch of fees will also be abolished, including 41 items of administrative fees charged by central authorities, and special funds collected for structural transformation of industrial enterprises.

“Many countries are implementing similar measures to enhance the competitiveness of their enterprises,” Premier Li said. “To help our enterprises stand out in the international competition, we must further reduce taxes and fees, so that they can develop with less of a burden.”

The Premier urged comprehensively implementing structural tax reduction policy, with efforts to levy tax according to the law, reduce the discretion of taxation, and prevent arbitrary taxation.

He also called for improving taxation services to provide conveniences for taxpayers, and better implementation of the value-added tax policy to simplify the structure of VAT rates.

Preferential tax policy for small and medium-sized enterprises should also be put in place, and more tax reduction incentives should be unleashed, the Premier stressed.

By now, the details for every tax reduction policy have been announced, some of which have been implemented and some including VAT rate and tax cuts for commercial health insurance took effect on July 1.

Premier Li urged related departments to take effective measures to cut various charges on enterprises, with efforts to clean up government funds and administrative fees, abolish the charges for the government’s general public services, and include charges for financial budget to institutions into budget management.

Meanwhile, supervision for operational service charges should be strengthened, with multiple measures to be adopted to reduce enterprises’ cost in the use of energy, land, logistics, financing, said the Premier, who also asked to rectify unreasonable charges of various trade and commerce associations and intermediary agencies.

He also called on every region and department to focus on the implementation of these policies and measures, while reinforcing audit and inspection work, exposing arbitrary charges and severely punishing violators.