Premier Li Keqiang of the State Council 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 entities; decided to establish a national financing guarantee fund to promote the alleviation of financing problems such as small and micro enterprises and "agriculture, rural areas and farmers"; listen Report on the progress of the State Council’s institutional reforms to ensure that the restructuring and functional adjustments are in place on time; the State Council’s Working Rules (Revised Draft) were discussed and passed.

The meeting pointed out that in the past five years, the cumulative tax cut was 2.1 trillion yuan through the implementation of the VAT reform. In accordance with the deployment of the Party Central Committee and the State Council, in order to further improve the tax system, support the development of the real economy such as manufacturing, small and micro enterprises, and continue to reduce the burden on market entities, the meeting decided that starting from May 1, 2018, first, the manufacturing industry and other industries will be increased in value. The tax rate will be reduced from 17% to 16%, and the value-added tax rate of transportation, construction, basic telecommunications services and other industries and agricultural products will be reduced from 11% to 10%. It is expected that the annual tax reduction will be 240 billion yuan. The second is to unify the standards for small-scale VAT taxpayers. Increase the annual sales standards for small-scale taxpayers of industrial and commercial enterprises from 500,000 yuan and 800,000 yuan to 5 million yuan, and allow companies that have been registered as general taxpayers to be registered as small-scale taxpayers within a certain period of time , Allowing more companies to enjoy the preferential tax calculation at a lower rate. The third is to give a one-time refund to the qualified enterprises in equipment manufacturing and other advanced manufacturing, R&D and other modern service industries and power grid enterprises that have not been fully deducted within a certain period of time. 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 domestic and foreign enterprises will benefit equally.

In accordance with the "Government Work Report"'s deployment of expanding inclusive financial services and better serving the real economy, the meeting decided that the central government initiated the establishment of a national financing guarantee fund with willing financial institutions, and the initial fundraising should not be less than 600 100 million yuan to support various provinces (autonomous regions and municipalities) in the form of equity investment and re-guarantee to carry out financing guarantee business, and drive all parties to fund support for small and micro enterprises, "agriculture, rural areas and farmers" and entrepreneurial innovation. At the same time, strengthen the construction of the social credit system. In accordance with the principles of "government support, market operation, capital preservation and low profit, and risk management", the fund adopts a market-based approach to decision-making and operation. Preliminary estimates show that the fund can support a total of about 500 billion yuan in related guaranteed loans in the next three years, accounting for about a quarter of the current national financing guarantee business, and strive to alleviate financing difficulties and financing in inclusive areas such as small and micro enterprises and "agriculture, rural areas and farmers". Expensive and support the development of strategic emerging industries.

The meeting pointed out that the institutional reform of the State Council is a major event for the State Council this year. The State Council has established a special coordination group, and relevant work is being actively and steadily advanced. The meeting demanded that thoughts and actions should be integrated into the Party Central Committee's decision-making and deployment, and deepen institutional reforms should be combined with "delegation, management, and service", and efforts should be made to transform and optimize government functions. Adhere to the consistency of powers and responsibilities, ensure that daily management is responsible, and respond to emergencies complement each other, form a joint force, and never allow management "dead corners" to ensure the smooth, orderly and coordinated progress of the State Council’s institutional reform and economic and social development. Complete the main goals and tasks for the development of the year.

The meeting passed the "State Council Working Rules (Revised Draft)" and decided to submit it to the first plenary meeting of the State Council for deliberation.

(Source: China Government Network)