Chinese Premier Li Keqiang on Wednesday stressed intensifying tax and fee cuts to provide relief to businesses and revitalize the market.
Chinese Premier Li Keqiang, also a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, presides over a symposium on the implementation of reducing taxes and fees on Jan. 5, 2022. Vice Premier Han Zheng, another member of the Standing Committee of the Political Bureau of the CPC Central Committee, attended the symposium. (Xinhua/Ding Lin)
Li, also a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, made the remarks at a symposium on the implementation of tax and fee reductions.
Vice Premier Han Zheng, also member of the Standing Committee of the Political Bureau of the CPC Central Committee, attended the symposium.
Noting that China's newly added tax and fee cuts have exceeded 8.6 trillion yuan (about 1.35 trillion U.S. dollars) since the 13th Five-Year Plan period (2016-2020), Li said the intensified implementation of tax and fee cuts is a key measure of China's macro policy and has reduced government spending while stimulating market vitality.
The tax and fee cuts have focused on supporting micro, small and medium-sized enterprises, individually run businesses, and the upgrading of the manufacturing industry, Li said.
Amid increasing downward pressure, Li stressed the need to strengthen cross-cyclical adjustments, promptly intensify the implementation of tax and fee cuts in response to the needs of market entities, and ensure stability on the six fronts and security in the six areas.
The six fronts refer to employment, the financial sector, foreign trade, foreign investment, domestic investment, and expectations. The six areas refer to job security, basic living needs, operations of market entities, food and energy security, stable industrial and supply chains, and the normal functioning of primary-level governments.
The country will extend the implementation of the tax and fee cut measures that expired by the end of 2021 to support micro and small enterprises, and individually run businesses, Li said.
Tax and fee cut measures will be implemented in a targeted manner to provide assistance to the services industry and other industries that have been hit hard by the pandemic and have large employment capacities, Li noted.
"The government must tighten its belt to give more benefits to businesses and energize the market," Li said, adding that central government finance will intensify efforts to provide general transfer payments to local authorities so as to make up for possible funding gaps at the local level.
Li also called for efforts to crack down on irregularities including arbitrary charges, tax evasion and fraud.
