When talking about the implementation effect of the tax reduction and fee reduction policy in recent years, Liu Kun said that according to the internationally comparable caliber, China's macro tax burden level has dropped from 28. 1% in 20 16 to 25.4% in 202 1 year, and the proportion of tax revenue in GDP has dropped from 17.5% to/kloc-.
The so-called macro tax burden refers to the proportion of government revenue in a country's total economic output in a certain period, which reflects the government's share in national income distribution and the relationship between the government, enterprises and individual residents in occupying and controlling social resources.
Since 1995, the macro tax burden in China has been rising all the way. Since the new century, especially after 2005, the macro tax burden has accelerated and remained at around 29% from 20 12 to 20 15. In July, 20 16, Politburo meeting of the Chinese Communist Party proposed to reduce the macro tax burden for the first time. In the following years, China launched a large-scale tax reduction and fee reduction policy. Since the "Thirteenth Five-Year Plan", the accumulated tax reduction and fee reduction has exceeded 8.6 trillion yuan, which exceeded the national fiscal revenue in 20 10.
"This scale is unprecedented in the history of our country, and it is also relatively strong from a global perspective." Xu Hongcai, Vice Minister of Finance, said at the recent press conference of the State Council Office.
In recent years, tax reduction is the main factor, which also makes the proportion of tax revenue in GDP decline even more, from 202 1 year to 15. 1%, which is very low in the world economy.
At present, the reasonable range of macro tax burden has not been reached in the world. Some developed countries such as France, Denmark, Sweden and Norway have a macro tax burden of around 40%. Macro tax burden is often regarded as a reference index to judge the level of corporate tax burden. Obviously, the higher the better, the lower the better.
Many financial and taxation experts told CBN that the macro tax burden can only reflect the changing trend of tax burden, but can't explain how high the tax burden is. In recent years, the macro tax burden in China has decreased, which reflects that the tax reduction and fee reduction policy has been implemented and the burden on enterprises has been reduced. To examine whether the macro tax burden is reasonable, we need to consider the quality and quantity of public products and services provided by the government. If the macro tax burden continues to decrease and the government's financial resources are limited, it may be difficult to provide a higher level of public services to the people. In order to satisfy people's yearning for a better life, China will gradually improve the level of public services, which requires sufficient financial support. From this perspective, the lower the macro tax burden, the better.
In fact, last year, the relevant departments said that they should stabilize the macro tax burden. Experts believe that this means that the current macro tax burden is reasonable, and it will remain at the current level for quite some time to come, and it will not decrease or increase, creating a good market environment for enterprise development and also conducive to fiscal sustainability.
For example, according to the data of the Ministry of Finance, the macro tax burden of China was 24.4% in 2020, and it increased by 1 percentage point to 25.5% in 202 1 year.
The main reason for the low macro tax burden innovation in 2020 is that in order to cope with the impact of the epidemic and help enterprises out, China introduced the most powerful tax reduction and fee reduction policy in history, and the scale of tax reduction and fee reduction in that year exceeded 2.6 trillion yuan. With the steady recovery of the economy, considering the financial sustainability, including the phased reduction and exemption of enterprise social security premiums, the macro tax burden has returned to a reasonable level. However, the scale of tax reduction and fee reduction last year was still as high as 1. 1 trillion yuan, which was at a historically high level.
In addition, due to the steady economic recovery and the impact of rising commodity prices, fiscal revenue rose rapidly last year, exceeding expectations. According to the data of the Ministry of Finance, the national general public budget revenue last year was 20,253.9 billion yuan, a year-on-year increase of 10.7%. This is higher than the economic growth rate of that year.
The stable macro tax burden does not mean that China will no longer introduce new tax reduction and fee reduction policies.
Liu Kun said that in the face of the triple pressure of shrinking demand, supply shock and expected weakening, in accordance with the decision-making arrangements of the CPC Central Committee and the State Council, in 2022, we should continue to implement new and greater combined tax cuts and fee reductions for market players, track the implementation effect of policies, study and solve outstanding problems reflected by enterprises in time, and help enterprises reduce costs, travel lightly and develop better.
At present, experts generally expect that the scale of tax reduction and fee reduction this year will exceed 1 trillion yuan, but under normal circumstances, it will not exceed the 2 trillion yuan mark. Moreover, this year's tax reduction and fee reduction is mainly based on short-term and phased policies. As the impact of the epidemic situation disappears and enterprises resume normal development, relevant policies will be withdrawn in due course.
Recently, the National Development and Reform Commission, the Ministry of Finance and other ministries and commissions have published specific policy documents to support industry and service industries, and the details of this year's tax reduction and fee reduction policy are more clear. One of the highlights of this year's tax reduction and fee reduction policy is more precise, focusing on small and medium-sized enterprises, manufacturing industries, difficult industries and supporting innovation.
Liu Kun said in the above that this year will continue to implement the tax reduction and fee reduction measures to support small and micro enterprises and individual industrial and commercial households that expired at the end of 20021. We will improve the policy of adding and deducting R&D expenses, increase the tax refund for VAT, and promote scientific and technological innovation and renovation of manufacturing enterprises. In view of the special difficult industries such as service industry, which is seriously affected by the epidemic and has a large employment capacity, we will study measures to reduce taxes and fees with precise assistance.
Behind the decline of macro tax burden in China is the reduction of fiscal revenue under the implementation of tax reduction and fee reduction policy, especially the obvious reduction of local fiscal revenue.
Liu Kun in the above requirements, financial departments at all levels insist on calculating big accounts and long-term accounts. Although reducing taxes and fees will reduce the current fiscal revenue, it will enhance the confidence and motivation of enterprises' investment and development, promote stability and expand employment, and finally achieve sustained economic growth and expanding tax sources. The central government will increase its support to local governments, help overcome the short-term financial revenue and expenditure pressure, and ensure the implementation of the tax reduction and fee reduction policy.