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2011: China's "tax cut for time."
Increase the amount of a tax exemption, tax relief for small and micro enterprises, value-added business tax reform pilot started - 2011 tax reform Damukaiqi China, "structural tax cut" into the public eye constantly. Economists here believe that these measures show that China is entering a "tax cut channel."China is widely expected this year in the industry revenue will exceed 10 trillion yuan, a new high on the occasion, to establish the right incentives to achieve a more equitable distribution, to respond to calls for more public opinion, as a new round of tax reform trend .
What structural tax "cut" Where?
"Five" the first year, the Chinese government's tax burdens in the action interesting.
September 1, the new tax laws to implement the revised one, threshold from 2,000 yuan to 3,500 yuan, a tax revenue of all the Chinese year of the reduction of 160 billion yuan.
November 1st, the Chinese Ministry of Finance, State Administration of Taxation announced the increase of VAT and business tax threshold, while financial institutions and small and micro-enterprises exempt from stamp duty on loan contracts signed for small and micro enterprises more vital.
November 17, "pilot program operating levy value-added tax reform," released from the decision date of January 1 next year, in Shanghai and part of modern transportation service to start the pilot. From 1 January 2012 to December 31, 2014, the exemption from registration of small micro-enterprise administrative fees 22 class fee.
Finance and Trade of China Academy of Social Sciences Research Office, Zhang Bindeng tax experts point out that the biggest feature of this round of tax reform is the current tax system increases and decreases the structural adjustment. The clear point for specific groups, such as low-income persons and small micro-enterprises to reduce tax burden.
What structural tax "cut" Where?
The "tax threshold increase, for example, the reform means that the whole of China exempt from a tax of about 60 million people, a large number of income earners increased this year in October over 17% growth in social spending, a tax reduction is no doubt play a role. "said Sun Lijian, vice president of Economics, Fudan University, which is conducive to high CPI in the current era of leveraging domestic consumer market.
Look at the small micro-enterprises. In 2011, international and domestic economic situation is very complex in the context of a number of small micro-enterprise in deep trouble. The Chinese government timely introduction of policies to substantially increase the VAT threshold, effectively reducing corporate taxes for small and micro enterprises help. "Not only is a small micro-businesses, and even the bottom of the individual businesses, street vendors and bazaars are the direct beneficiaries of fixed vendors." Zhang Bin said.
"Second five" in the "value-added tax to expand around the" kicked off in Shanghai recently. Display the latest policies, transport and services to become part of modern business tax reform VAT pilot areas.
China Federation of Logistics and Purchasing, Vice President Cai said: "The most important feature of tax reform, but also do a good job 'by' word article, that is unreasonable to reduce the duplication of the original tax, corporate profit sharing to promote the government, can be indirectly increase the income of workers. "
"These reforms are also good for consumers." Jia Kang, director of the Institute of Fiscal Science said, after the removal of double taxation factors will contribute to the breakdown of industry specialization, not only change the mode of development, but also help ease the moment rather controversial issue of domestic logistics costs are too high, reduce the end-consumer prices, so people get more benefits.
"Cut" word article how to do?
In recent years, China's tax revenue growth, but also triggered some controversy. For example, China's tax revenue in 2010 to complete 7.3 trillion yuan, an increase of 23%; the year GDP grew only 10.4%. The first three quarters this year, tax revenue 7.13 trillion yuan, up 27.4%, while GDP grew 9.4 percent, further widening the gap between the growth rate.
"This year's fiscal revenue expected to exceed 10 trillion yuan, more than 1 billion increase over last year, this increase of more than generally expected from the government's financial perspective, there are tax cuts to promote the structural strength." Lian Ping, chief economist at Bank said.
Liu Yuanchun, vice president of Renmin University of China, said the introduction of tax cuts through the proactive fiscal policy, you can adjust the structure and find a meeting point between steady growth. "Macroeconomic growth tax cuts for the reaction is still very sensitive, so to allow the financial condition, focused, steady reduction, the final distribution to reflect the promotion of social justice."
"Cut" word article how to do? Experts pointed out that "tax reform" should be timely, steady progress, both to promote people's livelihood, but also for some enterprises, "a strong sense of duty" status has improved.
"Xinhua Viewpoint" correspondent interviewed a well-known large-scale Chinese food companies learned that the main business items are VAT 17%, 25% corporate income tax, sales tax of 5% and so on. Also, value-added tax or sales tax base to pay for the urban construction tax (7%, 5% and 1% in third gear rate), additional education (3%), local education surcharge (2%), and so on. Must register to pay taxes last year reached 158 million, while the year's net profit was 1.65 billion yuan.
Zhang Bin, said the case reflects China's tax system a quite reasonable place, that is, value-added tax, business tax, a higher proportion of turnover tax; profit good companies like this, the operational difficulties of the enterprises have "earned more than pay for quite a few "phenomenon is not surprising.
Payment of turnover tax may eventually be reflected in prices, and that end users also need to bear some of the indirect taxes paid to bring the price hikes. China Tax Society, Shanghai University of Finance and Professor Hu Yi Jian pointed out that if the personal income tax is concerned, the fact that in our country, the proportion of ordinary people need to take is not high, but the commitment is reflected in the price because the turnover tax on the implicit tax is not low, "such as buying a $ 200,000 car, car buyers will bear a 40% purchase price equal to the tax, not including the bear in the course of the fuel consumption tax, while the consumption of tobacco, cosmetics, etc. personal commitment to the tax may be more important. "
Liu Yuanchun that rationalize the tax should be the trend. "In the long run, due to lower tax rates not only benefit people's livelihood, but also can stimulate GDP growth; as economic output increases, total revenue may decline."
"Waste reduction" How much look forward to?
It is worth noting that this year, China's real estate tax, resource tax reform have been implemented. Depository enrichment, tax cuts Huimin. With China's "structural tax cuts," the curtain opened, how many look forward to the future?
Political Economy Research Center of Tsinghua University, said Cai Jiming, seen from the three indicators on the "structural tax cut" time of arrival: First, in recent years, income grew more slowly than the growth rate of government revenue; second is from the absolute amount perspective, the proportion of income in national income decreased year by year, while the proportion of government revenue is rising year by year; third is the contribution of consumption to GDP ratio is declining.
End of October, China State Council executive meeting also stressed: "To improve the fiscal policies to promote structural tax cuts, and focus on protecting and improving people's livelihood urgent problem."
Director of Finance and Trade Economics Chinese Academy of Social Sciences in the Aim, future tax adjustment in the general direction, is to reduce indirect taxes, an increase in direct taxes. At present, the indirect nature of the turnover tax (including value added tax, business tax and consumption tax) accounted for 70% of China's total tax revenue over the nature of the income tax and direct taxes accounted for less than 30%. The future pattern of adjustment on the tax system more fair distribution reflects the leverage of secondary functions, so that the reform of the tax reform in income distribution, "the essay."
In addition to fiscal "revenue" on the efforts, the "branch" is also much to do. Experts point out that the Nordic countries up to 50% of the overall tax burden, but failed to inspire a wide range of community opposition, because these countries to implement "cradle to grave," the high welfare. Although the debt crisis in Europe shows that high welfare also has drawbacks, but for China, at this stage to consider is how to fill the livelihood of outstanding loans.
Hu Yi Jian said that the future tax policy changes during the legislative branch and fiscal expenditures, should be more consideration people's satisfaction, the real cause of the people's livelihood, and public service tilt, while doing everything possible to cut down the administrative public spending, a modest reduction in investment capital expenditure, as to optimize the expenditure structure. So, in order to truly tax "from the people, giving back to people."