Li Keqiang: Significant Tax Cuts For Basic Industries Such As Manufacturing

- Mar 19, 2019 -

Keywords: manufacturing

When meeting with Chinese and foreign journalists and answering questions from reporters, Premier Li Keqiang said that in recent years, he has used the carrier to increase the number of carriers and reduce the annual tax reduction of enterprises by 1 trillion yuan. This year, it is determined to carry out larger tax cuts and reductions, and the tax reduction and fee reduction is nearly 2 trillion yuan. On April 1st, the value-added tax will be reduced, and on May 1st, the social security premium rate will be pushed back.

"A large-scale tax cut and fee reduction is to move the government's stock interests and cut its own meat. This is a reform that is inward and the strong man breaks the wrist." Li Keqiang pointed out that to the manufacturing industry and other basic industries, to give the largest employment The small and medium-sized enterprises have obviously reduced taxes, and in fact they are "watering fish and raising fish" and cultivating financial resources. "We also need to adjust the structure of national income distribution. This is also a reform. From the perspective of the trend, we should give the real economy and the profits to the enterprises, so that they have a larger proportion of the national income distribution cake, so that they can drive more employment and let The employed population increases their income."

Li Keqiang pointed out that this year's larger tax cuts and fee reductions are a major reform and an important choice. The manufacturing value-added tax rate, which accounts for more than 50% of the value-added tax, is significantly reduced by 3 percentage points, and some industries such as the construction industry are down by 1 percentage point. All other industries ensure that they are only reduced. Inclusive tax cuts were implemented for all small, medium and micro enterprises, and the basic endowment insurance unit contribution rate was reduced from the original 20% to 16%.