4hw.com.cn: at the executive meeting of the State Council held on March 28, it was determined that from May 1, the VAT rates of 17% and 11% would be reduced by 1 percentage point and other three measures to deepen the VAT reform. After the implementation, the tax burden of market subjects would be reduced by more than 400 billion yuan in the whole year, and both domestic and foreign enterprises would benefit equally.
This is an inclusive tax reduction policy for the real economy, which will comprehensively boost the supply potential of the real economy. Liu Zhe, vice president of Wanbo New Economy Research Institute, told the Securities Daily that the tax cut is direct and time-effective, and relevant enterprises will benefit quickly. Compared with the change of tax type or tax structure, the direct reduction of tax rate is the most efficient and direct preferential policy for enterprises, which is conducive to improving the investment enthusiasm of enterprises.
"This VAT policy adjustment is what the market generally expects and enterprises are eager for. The tax reduction is stronger than the market expectation, which will bring huge benefits to enterprises. This shows that China's VAT is steadily advancing along the established goal of modern VAT reform. "Zhang Yiqun, director of Jilin Institute of financial science, told Securities Daily.
The meeting pointed out that in the past five years, the cumulative tax reduction by replacing business tax with value-added tax has reached 2.1 trillion yuan. According to the deployment of the CPC Central Committee and the State Council, in order to further improve the tax system, support the development of real economy such as manufacturing industry, small and micro enterprises, and continue to reduce the burden of market entities, the meeting decided that from May 1, 2018, the first is to reduce the VAT rate of manufacturing industry and other industries from 17% to 16%, and the VAT rate of transportation, construction, basic telecommunication services and other industries and agricultural products from 11% To 10%, it is expected to reduce tax by 240 billion yuan for the whole year.
Zhang Yiqun said that reducing the two VAT rates by 1 percentage point each has a positive role in promoting the development of manufacturing, transportation, construction and other industries, especially the high-end manufacturing industry and the transformation of industrial structure.
Liu zhe believes that in addition to some simple taxable items, the value-added tax rates of manufacturing industry, transportation and other industries are all reduced by 1%, and the marginal impact on the original 11% tax rate applicable to transportation, construction, basic telecommunications and other industries is greater. According to the 2017 industrial added value of RMB 28 trillion and the estimated net profit of industrial enterprises of RMB 750 billion, this tax reduction will increase the net profit of enterprises by 3.7%.
Jiang Zhen, a deputy researcher at the Institute of financial and economic strategy of the Chinese Academy of Social Sciences, told Securities Daily that these policies are all tax reduction packages. In particular, reducing the value-added tax rate can fundamentally reduce the constraints on the development of manufacturing enterprises, stimulate the vitality of manufacturing industry, and promote innovation.
Second, unify the standards of small-scale VAT taxpayers. Raise the annual sales Standard of small-scale taxpayers of industrial and commercial enterprises from 500000 yuan and 800000 yuan to 5 million yuan, and allow the enterprises registered as ordinary taxpayers to be registered as small-scale taxpayers within a certain period of time, so that more enterprises can enjoy the preferential tax according to the lower collection rate.