Tax cuts, we have personally experienced what the Prime Minister said
The tax burden of all industries can only be reduced and not increased. Xia Yujie, a deputy to China's National People's Congress, said she "feels this personally".
Xia Yujie introduced, "In recent years, the government has taken many effective measures to reduce the burden on enterprises, especially the implementation of replacing business tax with VAT, which has effectively reduced the burden on enterprises. For the auto parts industry where I work, the original travel expenses, road and bridge tolls, telecommunications services, construction and installation services, real estate leasing and other items that were originally subject to business tax. Now after the change to value-added tax, you can enjoy 3-17 points of deduction, transportation service projects can only be deducted 7% before, after the tax can be deducted 11%, to our group's subordinate Zhongding Rubber and Plastic Products Co., LTD., for example, in 2016, so paid nearly one million yuan less tax, so there are more funds for research and development innovation."
The effect of business tax reform is remarkable. This year, the Premier promised to further reduce taxes and fees in the "Government Work Report" : "The tax burden of enterprises will be reduced by about 350 billion yuan throughout the year, and the fees related to enterprises will be about 200 billion yuan. We must let market players have personal feelings."
In this regard, Xia Yujie said, "Under the current situation, the pressure on the survival and development of enterprises is still very large, taking the plastic products industry in Anhui province as an example, the statistics of 2015 show that 875 enterprises per 100 yuan of main income profit margin 6.46%. If I work in the enterprise product cost structure ratio to measure, the industry per 100 yuan of main income net interest rate of 4.85%, tax rate of 4.29%, tax money and net profit is almost the same, which can be seen, the enterprise tax cost is still high, the Premier in this year's report proposed to further reduce taxes and fees, I think this meets the actual needs of enterprise development, I hope the implementation can be accelerated."