The executive meeting of the State Council held on March 21 confirmed that the implementation of a large-scale policy arrangement of VAT credits and refunds will provide strong support for stabilizing the macroeconomic market.

"The large-scale tax rebate policy arrangements for large-scale tax rebates were determined at the regular meeting, which officially opened the prelude to large-scale tax rebates and tax reductions this year." Zhang Yiqun, deputy director of the China Fiscal Budget Performance Special Committee, said in an interview with a reporter from Shanghai Securities News that the regular meeting of the state The introduction of specific policies and measures for VAT credits and refunds after the National People's Congress and the National People's Congress is an important manifestation of the proactive fiscal policy of insisting that development is the first priority. It is also a useful attempt to further deepen the VAT reform and improve the collection and payment system. Better rationalize the relationship between the government and the market and their functional positioning, optimize fiscal and taxation policies and capital allocation, so that Chinese enterprises can be further revitalized.

Nearly 1 trillion yuan in tax rebates for small and micro enterprises and individual industrial and commercial households

The meeting clarified that nearly 1 trillion yuan will be refunded to small and micro enterprises in all industries and individual industrial and commercial households that pay taxes in the general taxation method. Among them, the existing tax credit will be refunded in full at one time before the end of June, micro enterprises will be refunded in April in a centralized manner, and small enterprises will be refunded in May and June; the incremental tax credit will be refunded in full monthly from April 1, and will be cancelled in stages.” For 6 consecutive months, the incremental tax credit is greater than 0, and the incremental tax credit for the last month is greater than 500,000 yuan.”

"Placing small and micro enterprise tax rebates in the highest priority position not only shows the country's high concern and attention to the survival and development of small and micro enterprises, but also reflects the country's high level of employment, people's livelihood and stability under the situation of increasing downward pressure on the economy. Pay attention, and give the tax rebate policy more important connotations such as economic and social stability." Zhang Yiqun believes.

In his view, the speed of VAT refunds has been significantly accelerated, and specific tax refund timetables are set according to the characteristics of different enterprises and industries according to the stock and increment, which provides great convenience for enterprises to raise funds in advance and facilitates the development of enterprises throughout the year. Provided strong financial support, allowing enterprises to eat the "reassurance" of the active fiscal policy.

Existing tax rebates cover 6 industries including manufacturing

The meeting decided that six industries, including manufacturing, scientific research and technical services, electricity, heat, gas and water production and supply, software and information technology services, ecological protection and environmental governance, transportation, warehousing, and postal services, will be awarded Existing tax credits will be fully refunded from July 1 and completed before the end of the year; incremental tax credits will also be fully refunded on a monthly basis from April 1.

Li Xuhong, director of the Institute of Fiscal and Taxation Policy and Application of Beijing National Accounting Institute, said in an interview with reporters that the above measures are a huge return of funds for small and micro enterprises, difficult industries and key state-supported industries. The tax credits that they have formed over the years have been solved at one time, no longer occupying funds, and a large amount of cash inflow has been formed, which is unprecedented. It is a major positive for this year's counter-cyclical and cross-cyclical adjustment, which will help enterprises resume production, increase investment, and activate market vitality.

According to Li Xuhong’s analysis, some of the above-mentioned enterprises that allow stock tax rebates can even reduce loans to expand their business scale, which fully reflects the unprecedented intensity of the government’s tax reduction and tax rebates, and the government’s firm determination to benefit the people and help the development of enterprises.

1.2 trillion yuan of transfer payment funds to support the grassroots

The meeting decided that on the basis of 50% of the tax rebate fund under the current tax system, the central government will set up three special projects by arranging 1.2 trillion yuan of transfer payment funds to support the grassroots implementation of tax rebates, tax reductions and fee reductions, as well as ensuring employment and basic livelihood. Among them, for the local burden part of the newly added tax rebates, the central government subsidy exceeds 82% on average, and it is inclined to the central and western regions.

The meeting called for the establishment of a fund pre-allocation mechanism, monthly pre-allocation and rolling liquidation, to ensure that the local treasury dynamically holds the funds needed for half a month's tax rebate. Strengthen fund supervision and treasury management, ensure that tax rebate funds go directly to market entities, and local subsidies go directly to the grassroots level in cities and counties.

The Ministry of Finance said that the first batch of special transfer payments of 400 billion yuan to support small and micro enterprises' tax rebates were issued on the afternoon of March 21.

The special fund for supporting small and micro enterprises with tax rebates issued on the same day will be used to provide cash flow to small and micro enterprises for tax rebate financial security, relieve difficulties for enterprises, and effectively guarantee stable growth, market entities and employment. Other special funds will also be released as soon as possible according to the progress of related work.

The Ministry of Finance also put forward clear requirements for local financial departments to effectively consolidate the main responsibilities of provincial financial departments, requiring all localities to promptly formulate policy plans for VAT credits and refunds that are refined to counties and districts, focusing on ensuring small and micro enterprises’ credits and refunds and counties and districts. To meet the needs of tax refund funds, timely discover and properly handle the problems that arise in tax refunds, and ensure that the “red envelopes” of tax refunds are promptly pocketed. While arranging the newly introduced special funds for tax rebates, other special funds for tax rebates, tax reduction and fee reduction and special funds for supplementing county and district financial resources are arranged to enhance the local financial resources, especially the county and district, and ensure the smooth operation of county and district finance.

Article source: Shanghai Securities News

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