To cope with the global financial crisis, the recent closing of the central economic work conference to "to maintain stable and rapid economic development" a clear economic work in 2009 as a top priority. Subsequently, in 2009 the focus of China's financial work has also surfaced.
Finance Minister Xie Xuren January 5 in the national financial meeting that 2009 will be the fiscal and taxation reforms in 2008 the basis of steady progress, and vigorously promote the reform of taxation system. Financial work in 2009 will focus on: the implementation of the proactive fiscal policy to expand the government's public investment, tax cuts, as well as the implementation of structural adjustment of national income distribution pattern, and optimize the structure of financial expenditure, and promote financial and taxation system reform.
Analysis of industry experts pointed out that "the implementation of structural tax cuts" will become China's tax policies in 2009 a major bright spot.
Structural details of upcoming tax cuts
In the recently held national financial work conference, Finance Minister Xie Xuren said that this year will be the implementation of structural tax reduction policy, and clearly pointed out the structural tax cuts in 2009 to increase and tax relief.
According to Minister Xie Xuren, the tax relief this year are: continue to implement the waiver to levy savings deposits and securities transaction tax on interest income settlement funds to reduce the rate of stamp duty on securities transactions and impose unilateral policies; the implementation of housing transactions to reduce the revenue policy; adjust and perfect the export tax rebate tariff policy; unified停征cancellation and 100 administrative fees.
Increase taxes are: the appropriate resources to expand the scope of tax; improve the consumption tax system, some of the serious pollution of the environment, a large number of products the consumption of resources into the tax; unifying foreign-funded enterprises and personal property tax, urban construction tax, such as教育费附加system to study the environmental taxes and related tax reform program.
Persons connected with the Ministry of Finance to accept the "China Economic Weekly" said in an interview that, from the perspective of the tax, the current relatively clear gains tax cut policy is in transition, that is, by the growth of value-added tax to consumption-based.
VAT is the first big tax. The State Council decided from January 1, 2009 transition from the full implementation of value-added tax reform, to encourage enterprises to conduct technological transformation.
Industry analysts believe that this reform, where the majority of production enterprises, will directly reduce the additional fixed assets depreciation each extraction as well as enterprise management costs, value-added tax on companies to reduce expenses and increase profitability will have a positive impact.
"We now have a better value-added tax to emphasize that transformation, not only to optimize the tax structure, but also to make the tax system and the entire tax structure is more reasonable and more equitable, both for enterprises with high technical content, or relatively low technical content industry, the future alike a; but also to encourage those with high technical content of the enterprises in independent innovation and technological progress, which is bound to alleviate the burden of enterprises will be. "Ministry of Finance related to the" China Economic Weekly "analysis.
Apart from the transformation of value-added tax, according to Finance and Trade by an expert from Chinese Academy of Social Sciences to the "China Economic Weekly", the fuel tax, import duty on the export and import, export tax rebates, as well as the personal income tax, will be structured in this year's tax reduction measures out.
"These are discussed for many years a major tax reform framework has been basically formed. And some small taxes, the operation is not without too much difficulty. Therefore, the tax rules should be introduced soon." The expert said that the characteristics of this year's Policy is action, and sell quickly, "If you do not help in an emergency, that is a mistake, that is, not as a government department." Therefore, various government departments are fully committed to address the financial crisis.
6000000000000 tax revenue is the basis of
Structural tax cuts, in a nutshell, is the "increases and decreases, the structural adjustment" of a tax reform program. "Structural tax" concept first appeared in the recently-concluded Central Economic Work Conference. Central Economic Work Conference stressed the need to greatly increase public spending, the protection of key areas and key construction spending to support the reconstruction of earthquake-stricken disaster recovery, the implementation of structural tax cuts, and optimize the structure of fiscal expenditure.
According to the experts, "structural tax" before the concept, the relevant tax reform and tax adjustments, collectively referred to as "structural adjustment" in the tax levels are maintained under the premise of the increases and decreases, while the "structure of tax cuts, "although also" increases and decreases, "but the overall level of tax burden dropped.
Academy of Social Sciences, deputy director of the Institute of Finance and Trade Gao Peiyong a recent interview with the media, said that the core content of structural tax reduction is, of course, tax cuts, but its behind with special meanings: First, the face of the global financial crisis, the current growth in the fundamental approach to security is to expand domestic demand, while expanding domestic demand is nothing more than financially by increasing government spending and reduce government tax revenue in two ways. Among them, in order to cut taxes to expand the residents and businesses in disposable income, thereby stimulating consumer demand and investment demand, with fundamental significance. Second, China's current tax structure is also a need to implement structural optimization of the important reasons for tax cuts.
Told reporters the industry analysis, structural tax cuts intended to reduce the tax burden from the volume level; mainly from optimization of tax structure, the service of economic growth and economic development to proceed the way the changing demands of its end-result is to reduce corporate and personal tax burden.
According to the Ministry of Finance estimated that January 1, 2009 to start the implementation of value-added tax reform is expected to reduce 120 billion yuan of fiscal revenue. At the same time, raising the export tax rebate rates also reduce the tax burden for businesses an important way. In the personal tax burden, the tax threshold is expected to further improve. If this tax at the same time several major tax cuts, state revenue is bound to be reduced accordingly.
"Implementation of structural and tax cuts, from this year, the value-added tax transformation will lead to a decrease in tax revenue, but to achieve a number of advantages: First, establishing a relatively good tax system; Second, a more equitable tax burden; Third, also reached in the near future to increase the business purpose of its own funds; more long term, or conducive to economic development, if development of the economy, ultimately will broaden the tax base, or at least will increase the tax base. "relevant parties to the Ministry of Finance told reporters optimistically.
"Now is not short of money Financial. China's tax rate is generally higher than the developed countries and some developing countries, to take this opportunity to cut down, so that the relative balance of the tax burden on businesses and future development of our country is perhaps a good thing." Academy of Social Sciences, the experts in finance and trade to the "China Economic Weekly" analysis.
U.S. "Forbes" magazine in 2007 had issued a "Global Tax Misery Index", the index shows that China's tax burden is second only to France, Belgium, ranked third in the world.
"It could perhaps be doubted whether such a 'burden' of the scientific ranking, but the reality of the public's tax burden is too high has been calling constantly. According to the Chinese tax status quo, go with the global tax trends and its impact, China should improve the tax system based on the modest tax cuts, select 'improving the tax system, a modest tax cut' policy of tax reform is bound to various aspects of the national economy will have a significant impact. "one of the industry told reporters that the tax burden should not too high, otherwise the enterprise the enthusiasm will be relatively poor, will weaken the vitality.
According to the Ministry of Finance Minister Xie Xuren in the national financial conference presentations, and in 2008 the overall revenue growth is expected to the country's financial revenues in 2008 will exceed 6 trillion yuan, an increase of 19%.
"The figure for the implementation of structural and tax cuts this year have laid a solid foundation. From the tax reform their own point of view, in the present context the introduction of some measures to optimize the tax structure is more suitable." Academy of Social Sciences, Finance and Trade, told reporters the experts analysis.
At present it is the best time for tax cuts
In November last year, China implemented a 4-year-old was finally out of sound fiscal policy "behind the scenes", expansionary fiscal policy (that is, the proactive fiscal policy) further step forward. State Administration of Taxation, deputy director of the original许善达pointed out that the expansionary fiscal policy should include two aspects, namely, investment and tax cuts.
The Asian crisis in 1998, China implemented a proactive fiscal policy, but only contains the contents of issuing treasury bonds, there is no tax cuts. Why should we in the crisis began to implement structural tax cuts?
Ministry of Finance director of the Institute of Fiscal Science Jia to the "China Economic Weekly" said that this round of fiscal policy and economic environment is very similar to 1998, but suffered greater external shocks. Fiscal policy in 2009 covering the central economic work conference stressed the security growth, expanding domestic demand, transfer the contents of the structure, but in fact there is to "promote reform" and so on.
According to the Academy of Social Sciences, finance and trade experts to "China Economic Weekly" analysis, in 1998 the proportion of tax revenue accounted for GDP is still relatively low, tax revenue was 122.5 billion yuan, accounting for the proportion of GDP to 11 percent, by reducing the stimulating effect on the economy is not too much; in recent years, the overall strength of China's tax revenue continued to increase. China's total tax revenue in 2007 nearly 5 trillion yuan, accounting for the proportion of GDP reached 22 percent, tax cuts to stimulate economic development will have an influence.
"Tax stimulus to the economy itself is assisted, if the volume is too small, or too low, to stimulate the economy of the role played by the even less. Therefore, at this time, implementation of structural and tax cuts, the timing is very good." The experts said.