State Council: from May 1, the VAT rate of manufacturing industry will be reduced from 17% to 16%

Premier Li Keqiang presided over an executive meeting of the State Council on March 28 to determine measures to deepen the reform of value-added tax and further reduce the tax burden of market players; We decided to set up a national financing guarantee fund to promote the alleviation of financing problems of small and micro enterprises and “agriculture, rural areas and farmers”; Listen to the progress report of the State Council’s institutional reform, and ensure that the institutional reset and functional adjustment are in place on time; The working rules of the State Council (Revised Draft) were discussed and adopted< The meeting pointed out that in the past five years, through the implementation of replacing business tax with value-added tax, the accumulated tax reduction wa2.1 trillion yuan. According to the deployment of the Party Central Committee and the State Council, in order to further improve the tax system, support the development of real economy such as manufacturing industry and small and micro enterprises, and continuously reduce the burden of market players, the meeting decided that from May 1, 2018, the first is to reduce the value-added tax rate of manufacturing industry and other industries from 17% to 16%, and reduce the tax rate of transportation, construction, logistics and other industries The value-added tax rate of basic telecommunications services and other industries and agricultural products has been reduced from 11% to 10%, and it is estimated that 240 billion yuan will be reduced in the whole year. Second, unify the standard of small-scale VAT taxpayers. The annual sales Standard for small-scale taxpayers of industrial enterprises and commercial enterprises will be raised from 500000 yuan and 800000 yuan to 5 million yuan, and enterprises registered as general taxpayers will be allowed to register as small-scale taxpayers within a certain period of time, so that more enterprises can enjoy the preferential treatment of tax calculation at a lower rate. The third is to refund the input tax not fully deducted in a certain period of time to the qualified enterprises in the advanced manufacturing industry such as equipment manufacturing and modern service industry such as R & D and power grid enterprises. The implementation of the above three measures will reduce the tax burden of market entities by more than 400 billion yuan throughout the year, and both domestic and foreign-funded enterprises will benefit equally in accordance with the deployment of the government work report on expanding inclusive financial business and better serving the real economy, the meeting decided that the central finance should initiate and unite with willing financial institutions to set up a national financing guarantee fund. The initial fund-raising should not be less than 60 billion yuan, and support provinces (autonomous regions and municipalities) to carry out financing guarantee business in the form of equity investment and re guarantee, Drive all parties to support small and micro enterprises, “agriculture, rural areas and farmers” and entrepreneurship and innovation. At the same time, strengthen the construction of social credit system. According to the principle of “government support, market operation, capital preservation and low profit, risk control”, the fund makes decisions and operates in a market-oriented way. According to the preliminary calculation, in the next three years, the fund can support about 500 billion yuan of relevant guarantee loans, accounting for about a quarter of the existing national financing guarantee business. Efforts should be made to ease the financing difficulties and high financing costs of small and micro enterprises, “agriculture, rural areas and farmers” and other inclusive fields, and support the development of strategic emerging industries< The meeting pointed out that the institutional reform of the State Council is a major event of the State Council this year. The State Council has set up a special coordination group, and relevant work is actively and steadily advancing. The meeting called for the unity of thought and action in the decision-making and deployment of the Party Central Committee, the combination of deepening institutional reform with "deregulation, management and service", and the transformation and optimization of government functions. We should adhere to the principle of consistency of rights and responsibilities, ensure that the daily management is in place, and the response to emergencies is complementary to each other, so as to form a joint force. We should never allow the "dead corner" of management, ensure that the institutional reform of the State Council and the work of economic and social development are carried out smoothly, orderly and cooperatively, and ensure that the main goals and tasks of the year's development are completed< The meeting adopted the working rules of the State Council (Revised Draft) and decided to submit it to the first plenary session of the State Council for deliberation

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