2 trillion! Li Keqiang announced: implementation of a larger tax cut

Abstract The opening meeting of the Second Session of the 13th National People's Congress was held at the Great Hall of the People at 9:00 on the 5th. Xi Jinping Party and state leaders attended the meeting. The Premier of the State Council, Li Keqiang, made a report on the work of the government, and the People's Daily Online refining the key points for you based on the live broadcast. Implementing larger tax cuts, inclusive tax cuts and...

The opening meeting of the Second Session of the 13th National People's Congress was held at the Great Hall of the People at 9:00 on the 5th. Xi Jinping Party and state leaders attended the meeting. The Premier of the State Council, Li Keqiang, made a report on the work of the government, and the People's Daily Online refining the key points for you based on the live broadcast.

Implement a larger tax cut

Both inclusive tax cuts and structural tax cuts are combined, with a focus on reducing the tax burden on manufacturing and small and micro enterprises. Deepen the VAT reform, reduce the current 16% tax rate in industries such as manufacturing to 13%, and reduce the current 10% tax rate in the transportation, construction and other industries to 9%, ensuring a significant reduction in tax burdens in major industries; maintaining 6% The tax rate of the first grade remains unchanged. However, by adopting supporting measures such as increasing tax deductions for production and life service industries, it is ensured that the tax burden of all industries will only be reduced or not, and continue to move toward the third-grade and two-speed tax rate and the simplified tax system. We will do a good job in implementing the inclusive tax cuts for small and micro enterprises that were introduced at the beginning of the year.

Significantly reduce the burden on corporate social security contributions

The proportion of contributions paid by the basic endowment insurance units of urban employees will be reduced to 16%. To stabilize the current method of collection, local governments may not adopt the practice of increasing the actual payment burden of small and micro enterprises during the process of expropriation system reform, and may not voluntarily collect historical arrears. Continue to implement the phased reduction of unemployment and work injury insurance rate policy. This year, we must make a substantial decline in the social security contributions of enterprises, especially small and micro enterprises.

Ensure that tax reductions and reductions are in place

It is a fair and efficient policy to reduce tax and reduce costs and directly address the pain points and difficulties of the current market players. In the whole year, the burden of corporate tax and social security contributions was reduced by nearly 2 trillion yuan. This will put a lot of pressure on the finance at all levels. In order to support the burden reduction of enterprises, governments at all levels must live a tight life and find ways to raise funds.

We must effectively let the market players, especially small and micro enterprises, have obvious feelings of tax reduction and fee reduction, and resolutely fulfill their commitments to enterprises and society. If there are more difficulties, we must do this big thing well.

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