Excessive Financial Revenue And Tax Reduction For Trillion Smes

At present, SMEs believe that

"Relatively small businesses can try a lower value-added tax.

In November 15th, talking about reducing the burden of small and medium-sized enterprises, Gao Peiyong, director of the finance and Trade Institute of the Chinese Academy of Social Sciences, gave a unique tax rate design in the forefront forum of Chinese economics.

Prior to the executive meeting of the State Council in October 26th, it has been decided that from January 1, 2012, pilot projects for deepening the VAT reform in some areas and industries will be carried out. Instead, the current business tax collection industry will be changed to a value-added tax. Based on the current 17% value-added tax rates and 13% low tax rates, 11% and 6% of two tax rates will be added.

Gao Peiyong recommends that 2 new low tax rates can be applied to small and medium-sized enterprises.

According to a study commissioned by the Ministry of industry and the people's University, there are 3 main reasons for SMEs' operating difficulties at present, namely, the lack of financing channels, the difficulty of enlarging the scale of land expropriation, and the selection and retention of people.

In addition, the burden of value-added tax and business tax is relatively heavy.

At present, 70% of China's tax revenue is mainly dependent on taxes imposed on enterprises.

Gao Peiyong believes that in addition to giving tax concessions, reducing taxes and fees and increasing support measures, it is necessary to start from the overall tax reform design and reduce the burden on enterprises.

Revenue this year

Will be overcharged trillion

At present, the national revenue is still growing rapidly.

According to the data released by the Ministry of finance, the national fiscal revenue in the first 10 months of this year was 9 trillion and 85 billion 168 million yuan, an increase of 28.1% over the same period last year.

Far exceeding the target of 8% growth in 2011, it also exceeded the target of 8 trillion and 900 billion in 2011.

To this end, Gao Peiyong believes that the actual fiscal revenue this year, relative to the target of 8 trillion and 900 billion, will exceed 1 billion.

Many professionals predicted that the national revenue will reach 10 trillion yuan this year, which may exceed the target set at the beginning of the year.

In March of this year, the Ministry of Finance disclosed that this year's national revenue was 89720 billion yuan, plus 150 billion yuan from the central budget stabilization fund. The total revenue could be 91220 billion yuan and 100220 billion yuan.

To this end, Gao Peiyong believes that overcharging and increasing income are not the same.

The so-called income increase refers to the increase on the basis of last year, while overtaking is beyond the target of increase.

At present, the national revenue has increased rapidly, and the tax revenue has increased rapidly. The main reason is that the tax revenue directly collected by enterprises has increased rapidly.

Data show that in October this year, domestic value-added tax was 199 billion 658 million yuan, an increase of 14 billion 100 million yuan, an increase of 7.6%.

Business tax 127 billion 596 million yuan, an increase of 21 billion 400 million yuan, an increase of 20.2%.

The Ministry of Finance concludes that the increase in business tax revenue is mainly due to the impact of the five increase in interest rate on the central bank since last October, and the increase in interest income from bank loans. The business tax on financial insurance increased by 29.6%.

Driven by the rapid growth of fixed assets investment, the construction business tax increased by 24.4%.

However, the real estate business tax declined, the cumulative growth of 20.9% in 1-8 months, an increase of 12.3% in September and a decrease of 5.2% in October.

CNOOC senior researcher Qiu Xiaohua believes that the country's more than 10 billion local debt platform, the actual bad debt is also 1 trillion -2 trillion.

China's fiscal revenue will reach 10 trillion yuan this year and GDP (GDP) will reach 40 trillion yuan, so China still has the ability to solve the local debt problem, and the economy will maintain steady and rapid growth.

"At the moment, there is no need for big changes in the overall macroeconomic policy, only some fine-tuning."

Qiu Xiaohua believes that China's industrialization and urbanization have not yet been completed. Considering that economic power is gradually being driven by the west, the economy will continue to maintain a high speed for many years.

Because of this, Liu Yuanchun, vice president of the school of economics, Renmin University of China, believes that in order to maintain the rapid growth of the economy in the future, a larger tax reduction policy can be implemented.

For example, through the model calculation, the tax reduction policy can make the total economic volume bigger and increase the total tax revenue.

"The best effect is to reduce consumption tax by 10%, which may increase GDP by 4.59%."

He said.

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Tax cuts for small and medium enterprises

Still need to raise the code.

Gao Peiyong, director of the finance and Trade Institute of the Chinese Academy of Social Sciences, believes that the next step of tax cuts for SMEs is to start with the expansion of value-added tax in the country.

For example, the current low value-added tax rate of 2 stalls can be applied to small and medium-sized enterprises.

According to the investigation of many departments, the burden of small and medium-sized enterprises is heavier at present.

By the end of 2010, there were more than 1100 small and medium-sized enterprises registered in the industrial and commercial sector, and more than 34 million self-employed industrial and commercial households, which had created 60% of GDP and achieved more than 50% tax revenue.

In particular, there are 44 million new jobs in cities and towns, and 80% of the new jobs in cities and towns are provided by small and medium-sized enterprises.

In terms of technological innovation and invention, SMEs provide about 65% of the country's invention patents, more than 75% of enterprise technological innovation and more than 80% of new product development.

However, according to a study commissioned by the Ministry of industry and information technology, the biggest problem for SMEs now lies in 3 aspects, namely, the lack of financing channels, the difficulty of land acquisition, and the difficulties of building brands and retaining enterprises.

Zhang Peili, an associate professor of Renmin University of China who has completed the survey, pointed out that to solve the above problems, it is still not enough to rely solely on the reduction of direct tax burden and to strengthen national policy support.

Gao Peiyong believes that China's next step is to reduce the tax burden on SMEs in the design of the overall tax reform.

At present, the low tax rate of two vat of 6% and 11% of the pilot value added tax can be applied to small and medium-sized enterprises.

Wen Jiabao, premier of the State Council, chaired a State Council executive meeting in October 26th.

The meeting decided that from January 1, 2012 onwards, pilot projects for deepening the value-added tax system in some areas and industries should be carried out.

First, pilot projects in Shanghai's pportation industry and some modern service industries will be conducted. When the conditions are ripe, some industries can be selected for pilot projects throughout the country.

On the basis of the current 17% standard duty rate of VAT and 13% low tax rates, 11% and 6% of two tax rates are low.

It is reported that in the proportion of all taxes in 2010, value added tax accounted for 39.5% and business tax accounted for 14.5%.

Gao Peiyong thinks that the proportion of small and medium-sized enterprises that levy business tax is large.

Instead of reducing the tax burden and avoiding duplication of Taxation, it is not only a new opportunity for economic development, but also a problem, which is embedded in the current system design, making it a kind of institutionalized force, thus laying a good foundation for the development of small and medium-sized enterprises.

He said.