Premier Li Keqiang on May 24 led a symposium on tax and fee reductions in Jinan, East China’s Shandong province, and stressed further efforts to implement the measures.
Governors from several provinces shared their opinions, and agreed that the wide cuts in tax and fees eased the burden on market players, and increased citizens’ income, stabilizing expectations and growth.
Premier Li had exchanges at the meeting, and said the economy still faces complications and external uncertainties despite the good start in the first quarter.
He stressed that more vitality in the real economy should be unleashed through reform and opening-up, with work being done to stimulate internal demands and overcoming challenges to lay a solid foundation for employment and stable economic growth.
Premier Li said that hundreds of millions of market entities is the key to stabilizing employment and the engine for economic growth, adding that it is vital to ensure the delivery of larger-scale tax and fee cuts to stimulate market entities.
Although cuts in taxes and fees will cause short-time decreases in financial revenue, enterprise confidence in investment and motivation to develop will be strengthened, employment expanded, economy boosted and tax sources broadened, the Premier said.
Efforts are needed to guarantee that tax burdens are eased in all industries and price of agricultural materials stay stable.
He said that the central government has been well prepared for tax and fee reductions and is able to achieve a nationwide balance between revenue and expenditure, requiring local authorities to overcome difficulties in implementing the policy and reaching a balance as well.
Premier Li asked local governments to accumulate more funds to push forward tax and fee cuts through making use of surplus budgetary funds and government assets, and asked local State-owned enterprises to turn in more profits. Meanwhile, central government will provide financial assistance to regions facing special difficulties.
Governments at all levels must tighten their belts, ensure spending in areas such as improving people’s basic living standards and supporting key projects, he stressed.
The Premier said that China’s economy is resilient and there are policy options for macro regulation. Currently, larger-scale tax and fee cuts should be fully implemented. In the immediate future, restrictions on VAT tax refunds in the manufacturing industry will be further eased and procedures will be optimized. Supporting policies for enterprises’ R&D will be improved.
Governments at all levels are urged to pay attention to economic development and improve policies and measures. Benefits from policies such as tax and fee cuts should be made to inject impetus into the improvement of economic structure and growth of effective domestic demands. Efforts are also needed to ensure stable economic performance, improve people’s well-being and work for high-quality development.
State Councilor Xiao Jie also attended the meeting.