More combined tax and fee cuts in 2022?It’s worth waiting for!

2022-06-12 0 By

An employee checks tax credit information through a self-service terminal at the Tax bureau of Taizhou District of the State Administration of Taxation in Fuzhou, capital of East China’s Fujian Province, Jan. 15, 2021.Beijing, Jan. 25 (Xinhua) — China will implement new and more powerful combined tax and fee cuts in 2022 to meet the needs of market players, Vice Finance Minister Xu Hongcai said on Thursday.”We will cut taxes and fees by over 1 trillion yuan in 2021, on top of over 7.6 trillion yuan in total during the 13th Five-Year Plan period.”Xu hongcai said at a press conference of the State Information Office that day.Over the past year, the Ministry of Finance has further optimized and implemented policies to cut taxes and fees, highlighting support for the upgrading of manufacturing and micro, small and medium-sized enterprises as well as individual businesses, and promoting a virtuous cycle of “releasing water to feed fish” and “having more water to feed fish”, he said.Looking ahead to 2022, Xu hongcai said the Ministry of Finance will further implement tax cuts and fees in four aspects in order to continuously stimulate the vitality of market players.First, with a focus on high-quality development of the manufacturing sector, we increased the amount of VAT tax rebates and improved the policy of additional tax deductions for R&D expenses.Second, we will continue to implement tax and fee cuts that will expire at the end of 2021, focusing on small and micro businesses and individual businesses.Third, we will focus on strengthening local financial resources to ensure tax and fee cuts.”The central government will continue to increase transfer payments to local governments, so as to ensure that local governments do not discount tax and fee cuts due to lack of financial resources.”Xu hongcai said.In addition, we must resolutely crack down on tax evasion, tax fraud and arbitrary collection of fees.”Overall, in 2022, tax and fee cuts will play an important role in boosting market players’ confidence, stabilizing market expectations, expanding effective investment, boosting end consumption and promoting steady and sound economic development.”He said.