On January 9, Premier Li Keqiang presided over the State Council executive meeting. The meeting pointed out that it is very important to implement the spirit of the Central Economic Work Conference and maintain a reasonable range of economic operations this year, and strive to achieve a smooth start in the first quarter.
The meeting decided to introduce a number of inclusive tax cuts for small and micro enterprises; deploy and speed up the issuance and use of local government special bonds, support construction in progress and fill short board projects and drive consumption expansion.
Tang Jianwei, deputy general manager and chief researcher of Bank of Communications Jinyan Center, pointed out that the inclusive tax cuts for small and micro enterprises are expected to reduce 200 million yuan for small and micro enterprises every year. The preferential policy lasts for three years and the overall tax reduction scale Up to 600 billion yuan.
Infrastructure construction short-board is the key to steady growth. Infrastructure investment funds mainly rely on local special bonds. In 2018, due to the concentration of special bond issuance in the second half of the year, infrastructure investment slowed down significantly in the first three quarters. The issuance scale of local special bonds in 2019 will be significantly higher than the 1.35 trillion yuan in the previous year. It is expected to exceed 2 trillion yuan in the whole year and will speed up the issuance.
"The 1.39 trillion yuan of local debt to be issued in advance is to hope that the active fiscal policy will play a role in the first quarter, thus serving as a bottoming economy and ensuring a smooth start in the first quarter of the economy." Tang Jianwei said.
The National Bureau of Statistics will release economic data for 2018 in late January, and the manufacturing purchasing managers' index for December 2018 is already below 50%, reflecting signs of contraction in manufacturing. On January 8, 2019, the World Bank released the latest forecast that China's economic growth rate was 6.2% in 2019, and the second time China's economic growth rate was lowered.
New local debt issuance
The State Council executive meeting on January 9 pointed out that it is necessary to focus on superior structure and stable domestic demand, and play a more effective role in fiscal and monetary policy.
To this end, the 1.39 trillion yuan of local debt that has been authorized in advance by the National People's Congress should be issued as soon as possible. We will promptly determine the allocation plan for the special debts for the whole year and strive to complete the basic issuance before the end of September.
At the same time, it is necessary to give full play to the important role of special debts in the current steady investment to promote consumption. Special fundraising funds should be used preferentially for projects under construction, to prevent “half-pull†projects, to support major projects within the plan, and to solve the arrears of government projects. In the place with construction conditions, we will start a number of major projects such as transportation, water conservancy, and environmental protection, and form a physical workload as soon as possible. Where there are no conditions for the time being, we must also carry out preliminary work such as preparing materials.
The monetary and credit policy should be coordinated with special bond issuance and project supporting financing to guide financial institutions to strengthen financial services and guarantee the follow-up financing of major projects. It is also necessary to standardize the management of special debts, implement repayment responsibilities, and strictly control the implicit debts of local governments.
The meeting pointed out that it is necessary to implement the comprehensive measures for RRR reduction announced recently, continue to implement a prudent monetary policy, insist on not engaging in “big flood irrigationâ€, timely pre-adjust and fine-tune, ease the financing difficulties of private enterprises and small and micro enterprises, and ensure market liquidity. Reasonable and sufficient, promote the expansion of employment and consumption. At the same time, it is necessary to speed up the use of local government special bonds.
Earlier, the Central Economic Work Conference proposed that the size of local government special bonds should be increased by a large margin in 2019.
According to data from the Ministry of Finance, after the first meeting of the 13th National People's Congress, the national local government debt limit was 20,997.430 billion yuan in 2018. Among them, the general debt limit is 123,789.22 billion yuan, and the special debt limit is 861.518 billion yuan. If you look at the annual interest rate of 3%, you only need several hundred billion yuan in interest for one year.
He Fei, a senior researcher at the Bank of Communications Financial Research Center, pointed out that the State Council executive meeting is more focused on active fiscal policy. Future monetary and fiscal policies are expected to be further coordinated. Credit and debt support for Xiaowei will be further implemented. Credit and bonds will be further implemented. The equity support model in the equity “three arrows†is worth looking forward to.
At present, the mode of “several lifts and three arrows†service proposed by the central bank has been well implemented.
Tax reduction for small and micro enterprises
The State Council executive meeting also proposed to implement inclusive tax cuts.
The meeting pointed out that it is very important to implement the spirit of the Central Economic Work Conference and maintain a reasonable range of economic operations this year, and strive to achieve a smooth start in the first quarter. Must be multi-pronged. Develop a small and micro-enterprise relationship, stable economic operation and stable employment.
The meeting decided to introduce a number of new inclusive tax cuts for small and micro enterprises.
The first is to substantially relax the small and meager profit enterprise standards that can enjoy the enterprise income tax concessions, and at the same time increase the income tax concessions, and reduce the annual taxable income of small and micro-profit enterprises not exceeding 1 million yuan, 1 million yuan to 3 million yuan. 25% and 50% are included in the taxable income, which reduces the tax burden to 5% and 10%. The adjusted preferential policy will cover more than 95% of taxpaying enterprises, 98% of which are private enterprises.
Secondly, for small-scale taxpayers, mainly including small and micro enterprises, individual industrial and commercial households and other individuals, the VAT threshold will be raised from monthly sales of 30,000 yuan to 100,000 yuan.
In addition, the provinces (autonomous regions and municipalities) are allowed to reduce the local taxes and education surcharges such as resource taxes, urban maintenance and construction taxes, stamp duty, urban land use tax, and cultivated land occupation tax on 50% of VAT small-scale taxpayers. ,Local education surcharges. Expanding investment in start-up technology-based enterprises enjoys the scope of preferential policies, so that venture capital companies and angel investment individuals who invest in such enterprises have more tax incentives.
In order to make up for the local financial gap caused by large-scale tax reduction and fee reduction, the central government will increase the local general transfer payment. The above-mentioned tax reduction policy can be traced back to January 1 this year, and the implementation period is tentatively set for three years. It is estimated that the annual reduction of small and micro enterprises will be about 200 billion yuan.
Hu Yijian, a professor at the School of Public Administration of Shanghai University of Finance and Economics, pointed out that this is a preferential treatment for SMEs from the aspects of value-added tax and income tax, which is equivalent to exempting the turnover tax and greatly reducing income tax, which is a major positive for SMEs. At present, the downward pressure on the economy is high, and SMEs face more difficulties. Corporate tax burdens, involving land costs, labor costs, taxes and fees, etc., rent and labor costs are difficult to lower, but the government can reduce the cost of taxes and fees.
"This tax reduction has increased and it has greatly helped the development of many enterprises." Hu Yijian said that the selection of tax reduction targets for this reform is conducive to helping difficult SMEs to tide over the difficulties.
At present, the Institute of Social Sciences of China, the Bank of Communications Financial Research Center, and the Peking University National Economic Research Center all expect that the economic growth rate will be around 6.3% in 2019. The World Bank lowered its economic growth rate of 6.2% in 2019 on January 8. Considering that China's current corporate income tax rate, personal income tax rate, and social security rate are still high in the world, China still needs to increase tax reduction fees in the future.
Tang Jianwei pointed out that the inclusive tax cuts introduced for small and micro enterprises are expected to reduce 200 million yuan for small and micro enterprises every year. The preferential policies last for three years, and the overall tax reduction scale can reach 600 billion yuan. Micro-enterprises play a better role in reducing the burden.
The tax reduction and fee reduction is still mainly for small and micro enterprises, and it is still a structural tax reduction. At present, the market is expecting a larger scale and a wider range of overall tax reductions, that is, to adjust the tax rate of the two major taxes of value-added tax and corporate income tax. Tang Jianwei believes that only the reduction of the tax rate of these two major taxes can achieve the effect of reducing the annual tax reduction and reduction to about 1 trillion yuan, which can really boost market confidence.
Cater Parts,Cater Engine Parts,Cheap Cater Parts,Cater Forklift Parts
JINING SHANTE SONGZHENG CONSTRUCTION MACHINERY CO.LTD , https://www.huaxinbrush.com