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Speakers:

Mr. Wang Jun, commissioner of the State Taxation Administration (STA)

Mr. Wang Daoshu, deputy commissioner of the STA

Mr. Luo Tianshu, chief accountant of the STA

Mr. Cai Zili, chief auditor of the STA

Chairperson:

Ms. Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 6, 2023

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 12th briefing in the series "Embarking on the New Journey — A Government Perspective." Today, we have invited Mr. Wang Jun, commissioner of the State Taxation Administration (STA), to brief you on better harnessing taxation to deliver high-quality economic and social development, and to take your questions. Also joining us today are Mr. Wang Daoshu, deputy commissioner of the STA; Mr. Luo Tianshu, chief accountant of the STA; and Mr. Cai Zili, chief auditor of the STA.

Now, I'll give the floor to Mr. Wang Jun for a brief introduction.

Wang Jun:

Friends from the media, ladies and gentlemen, good morning. It is my pleasure to meet you at this press conference and respond to your concerns. For years, journalist friends and people from all sectors of society have given their full support and understanding to the taxation work and tax authorities. On behalf of the STA and my three colleagues here today, I would like to take this opportunity to express my heartfelt gratitude to you all. Thank you.

Since this year, faced with a complex global environment and challenging domestic reform and development tasks, the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core has united and led the Chinese people of all ethnic groups, efficiently balanced both the international and domestic situations, and strived to achieve an overall improvement in economic performance. As a result, China's economy has got off to a relatively rosy start. Taxation is a barometer of the economy. Business production is followed by sales, and sales cannot be completed without issuing invoices. By taking advantage of value-added tax (VAT) invoices and other taxation-related big data, which are immediate, broad-based and detailed, the tax authorities can depict and compare the macroeconomic trends in a timely, objective and relatively comprehensive manner. This graph shows the changes in the sales revenue of enterprises across the country from January 2022 to April 5, 2023.

As shown by the curved line on the graph, in the past 15 months, the growth rate of sales revenue of enterprises across the country makes two V shapes, which together form a W shape. The first V-shaped curve started from the high growth rate of 6.6% in the January-February period last year. Then, the growth rate began to drop month by month to a low of -7.4% in April, and returned to a relatively high level of 7.5% in June. The second V-shaped curve started last July, slowly fluctuated and declined to a low of -3.1% in December, which was also the second-lowest growth rate last year. With the swift and smooth transition of the COVID-19 response measures and macroeconomic policies taking effect, the growth rate of business sales revenue has been picking up this year. The growth rate in the first quarter rose by 4.7% year on year and increased by 6.2 percentage points compared with the fourth quarter of last year. The growth rate also increased month by month, and the figure achieved a year-on-year increase of 12.8% this March.

Taxation-related big data also shows the growing confidence of businesses in production and operation going forward. In March, the value of business purchases increased 14.1% year on year, which was 12.8 percentage points higher than in January-February. The figure from April 1-5 saw a year-on-year increase of 23.8%. More purchases will translate into more sales. Given the low level last April and the continuing effects of the series of macroeconomic policies this year, we are certain that business sales revenue in April will see an even higher year-on-year increase than March. Business sales revenue from April 1-5 also reached a high level, up 21.2% year on year. In short, during the first year of the implementation of the guiding principles of the 20th CPC National Congress, China's economy has seen sound growth momentum overall in the first quarter. Such momentum was maintained on a month by month basis, and continues to improve.

The 20th CPC National Congress drew up a grand blueprint for advancing the rejuvenation of the Chinese nation on all fronts through a Chinese path to modernization. Important arrangements were made at the Central Economic Work Conference and the NPC and CPPCC Sessions, and by the new-term State Council for promoting China's economic and social development. All these facts have placed new and higher requirements on tax reform and development. Taxation authorities must further strengthen their political stance and keep in the right direction in their work. We will strive to be a pragmatic doer and a solid contributor to implementing the decisions of the CPC Central Committee and the State Council, also a servant, a publicist, and a close friend of the tax and fee payers. We will give better play to and expand the role of taxation, lay a solid foundation for promoting all taxation-related work from a new starting point, and better serve Chinese modernization through taxation modernization.

First, we will continue to intensify self-improvement efforts to ensure that taxation organs are first political organs. At any time, taxation authorities should take immediate action in accordance with the arrangements made by the CPC Central Committee. We will launch activities under the theme of studying and putting into practice Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and follow the general principle of "studying the Thought, strengthening Party spirit, prioritizing practice, and making new contributions." By studying profoundly, understanding thoroughly, and doing investigation and research carefully, we will strive to assume responsibilities and do solid work. By doing so, we will constantly break new ground in the self-improvement of the taxation system as a political organ, make new achievements in all taxation-related work, and oversee that taxation officials take new steps to perform their duties.

Second, we will focus on the primary task of serving high-quality development. High-quality development is the top priority in building China into a modern socialist country in all respects and also the primary responsibility of taxation authorities in serving matters of national significance. All taxation-related work should focus on and make a contribution to this priority. We will continue to collect taxes in accordance with laws and regulations and stick to the bottom line of no tax or fee not prescribed by law so as to create a solid financial foundation for achieving high-quality development. We will proactively study and fully implement all preferential tax and fee policies so as to speed up economic growth and unleash market vitality for achieving high-quality development. We will also constantly adopt measures to innovate our services and enhance targeted regulation to ensure that taxation authorities always respond to people's concerns, meet people's needs, and strive for people's aspirations so as to foster a favorable tax and business environment for high-quality development. 

Third, we will deepen reform, promote innovation, perform our duties in a creative way, and improve our efficacy. We will earnestly implement the requirement of the CPC Central Committee to engage in extensive research and fact-finding activities and carry out the arrangements set by the new-term State Council. By switching roles and putting ourselves in others' positions, we will work to understand the realities, take specific steps, and deliver solid outcomes. Focusing on hands-on experience, wholehearted services, solid progress, and effective reforms, we will guide taxation officials to perform their duties and ensure implementation in a creative way and strengthen the role of taxation as the foundation, pillar, and guarantee of the country's governance.

Next, my colleagues and I are happy to answer your questions. Thank you.