From Deepening Tax System Reform to Promoting Development through Fiscal Policies
2024-07-09
In the past decade, tax system reform has left a profound mark in the comprehensive deepening of China's fiscal reform in the new era. The value-added tax reform, which has been ongoing for many years and involves a wide range of tax reforms, has the greatest impact on enterprises; For ordinary people, the personal income tax reform directly affects their wallets. Under the tax reform, the connotation of the proactive fiscal policy implemented for many years has changed from the past. He Daixin, director of the financial research department of the Institute of Financial Strategy, Chinese Academy of Social Sciences, said that from 1998 to 2004, the active financial policy focused on spending, increased treasury bond to expand financial spending, and strengthened infrastructure construction. Afterwards, the connotation of active fiscal policy became increasingly rich. China utilized tax policies to reduce social burden, especially the tax burden on market entities, and promote economic development. Under the tax reform, it is real gold and silver. According to official data, from 2013 to 2022, the cumulative increase in tax reduction and fee reduction, as well as tax refund and fee deferment, exceeded 13 trillion yuan (RMB). In 2023, the scale of newly added funds for tax reduction, fee reduction, and tax refund deferral in China exceeded 2.2 trillion yuan, effectively helping to stabilize market expectations, boost market confidence, and stimulate market vitality. During this period, China carried out a large-scale reform around the largest tax type - value-added tax. In 2016, the nationwide implementation of the business tax to value-added tax (VAT) reform completed the modern transformation of the value-added tax system and eliminated the drawbacks of duplicate taxation in the production, circulation, and service sectors. In 2018, we deepened the reform of value-added tax and reduced tax rates in industries such as manufacturing and transportation. In 2022, a large-scale value-added tax deduction and refund will be implemented. With the tax reform, the tax burden of enterprises has correspondingly decreased. Among them, about 80% of individual businesses nationwide are no longer required to pay taxes after the implementation of a series of tax and fee support policies by the government. He Daixin said that as corporate tax and fee costs decrease, production costs also decrease. Even if income remains unchanged, domestic demand can still expand. In 2022, Qianzhiya (Hubei) Sanitary Products Co., Ltd. received a tax refund of 21.75 million yuan. Under the tax reform, enterprises have reduced procurement costs and people have improved their purchasing power. Starting from October 2018, a new round of personal income tax reform has been implemented, with an increase in the monthly basic deduction standards for expenses. The special additional deduction for personal income tax has taken the historical stage and continuously expanded and improved. Among the tens of millions of beneficiaries, the group of "elderly above and young below" has the deepest feelings. Shi Wenwen, Director of the Finance and Taxation Law Research Center at China University of Political Science and Law, said that the reform of individual income tax involves a wide range of areas and benefits a large number of people, directly reducing the burden on families in areas such as children's education, housing, and supporting the elderly. The reduced taxes flow into the pockets of the people, and their willingness and ability to consume also increase. Lowering personal income tax is an important means of stimulating consumption, and income growth has a significant driving effect on the consumption of middle and low-income individuals. Professor Bai Yanfeng from the School of Finance and Taxation at Central University of Finance and Economics said that the continuous years of tax reduction and fee reduction have targeted efforts to help enterprises overcome difficulties and difficulties; The reform of individual income tax has stabilized the development and growth of the huge domestic demand market. Faced with the complex international and domestic situation, as well as a new round of technological revolution and industrial transformation, tax reform will not stop. Efforts to continuously create a market-oriented, legal, and international tax and business environment cannot be neglected. Hu Jinglin, Director of the State Administration of Taxation, recently wrote a paper titled "Tax Practice of Promoting Chinese path to modernization with High Quality", saying that we should continue to deepen tax administration by law, by numbers, and strictly, and constantly improve the ability and level of tax collection and management, convenient services, and risk prevention and control of tax departments. We will deepen the reform of the tax system and optimize tax and fee policies, focus on key tax categories, regions, enterprises, and matters, strengthen precise supervision, effectively plug loopholes and increase revenue, collect taxes and fees that should be collected in accordance with laws and regulations, and firmly adhere to the bottom line of not collecting "excessive taxes and fees". We will grasp the efficiency of our work and create a good tax environment for the healthy and standardized development of various business entities. Bai Yanfeng believes that in planning a new round of financial and tax system reform, efforts should be made in digitization, greening, and service-oriented aspects to continuously promote tax fairness; Accelerate the process of greening and low-carbon, and prevent taxation from falling behind as a barometer of economic development; We will increase the proportion of consumption tax, improve the local tax system, straighten out the relationship between taxes and fees, and establish and improve a modern financial system that is compatible with Chinese path to modernization. (Lai Xin She)
Edit：Lubaikang Responsible editor：Chenze
Source：chinanews.com
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