Perspective of China's structural tax reduction roadmap for 2012

The Central Economic Work Conference, which just concluded, proposes to continue to improve the structural tax reduction policy in 2012. How will the structural tax reduction policy be renewed next year? In response, Minister of Finance Xie Xuren explained the roadmap for improving structural tax cuts next year at the National Financial Work Conference held on the 25th. Reducing import tariffs and promoting industrial restructuring as an important part of improving structural tax reduction next year, Xie Xuren pointed out that in 2012 China will reduce tariffs on some imported goods and increase imports of energy resources products, advanced equipment and key components. The Ministry of Finance announced in the middle of this month that from January 1, 2012, China’s import and export tariffs will be partially adjusted, and a lower import provisional tax rate will be imposed on more than 730 commodities, with an average tax rate of 4.4%. It is 50% lower than the MFN rate. Experts said that in the context of slowing global economic growth and reducing imports in some countries, China's tax cuts to expand imports will help promote industrial restructuring and expand consumption. Small and micro enterprises have been reduced to negative complex economic situation at home and abroad. How to reduce the burden on small and micro enterprises has always been a hot spot of social concern. Xie Xuren pointed out that next year, we will continue to implement various policies to reduce the burden of taxes and fees for small and micro enterprises, such as raising the value-added tax and business tax threshold. The implementation of preferential income tax policies for small and micro enterprises, for small and micro enterprises with annual taxable income of less than 60,000 yuan, the income is reduced by 50% into taxable income, and the enterprise income tax is paid at a rate of 20%. In addition, he stressed that next year, we will implement other tax and fee reduction policies, cancel unreasonable and illegal tax-related projects, comprehensively clean up and regulate road tolls, and reduce the burden on enterprises and society. Business tax change VAT has been steadily expanded Since January 1, 2012, China will conduct a pilot reform of business tax to VAT in Shanghai's transportation industry and some modern service industries. This reform helps to eliminate double taxation and reduce corporate tax burdens. For this reform pilot, Xie Xuren said at the meeting that in some productive service industries, the implementation of the business tax reform VAT reform pilot is an important measure for China to improve the VAT system. China will gradually solve the taxation policy for goods and services from the system. Coordination issues. He stressed that on the basis of the pilot of the change of business tax to VAT in Shanghai's transportation industry and some modern service industries, the scope of the pilot will be steadily expanded to promote the development of the service industry, especially the modern service industry. In addition, next year, China will expand the scope of taxation for business tax differences for logistics enterprises, and implement urban land use tax policies that support the land used for logistics enterprises' bulk storage facilities. Wholesale and retail of vegetables are exempt from VAT. Resource Tax and Consumption Tax Reform Leading Deeply When talking about the reform of the tax system next year, Xie Xuren pointed out that in addition to the sound value-added tax system, next year, the reform of various taxation systems, such as resource tax and consumption tax, will be promoted. Xie Xuren said that next year China will comprehensively promote the resource tax reform, expand the scope of ad valorem collection in a timely manner, and promote resource conservation and environmental protection. Seriously sum up the experience of the real estate tax reform pilot, and steadily promote the pilot reform of the property tax. As an important measure to expand domestic demand, next year China will further improve the consumption tax system, rationally adjust the scope of consumption tax and tax rate structure, promote energy conservation and emission reduction and guide rational consumption. In addition, he pointed out that next year, we should further promote urban maintenance and construction tax reform, study and formulate environmental protection tax and fee reform programs, and continue to clean up and integrate administrative fees and government funds in accordance with the principles of tax collection and classification.

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