The National Committee of the Chinese People's Political Consultative Conference (CPPCC) held its 21st briefing on issues of major concern in Beijing on Jan 7.

The National Committee of the Chinese People's Political Consultative Conference (CPPCC) holds its 21st briefing on issues of major concern in Beijing on Jan 7. [Photo/cppcc.gov.cn] 

The meeting, themed on tax cuts and fee reductions, was attended by Gu Shengzu, vice-chairman of the CPPCC National Committee and executive vice-chairman of the Central Committee of the China National Democratic Construction Association. 

Cheng Lihua, vice-minister of finance, and Ren Rongfa, deputy commissioner of the State Administration of Taxation (SAT), briefed the CPPCC members on relevant information at the meeting. 

Cheng said that faced with extremely complex domestic and international situations, the government has carried out a series of timely tax cut and fee reduction policies, and carefully made arrangements to ensure their implementation. 

In 2019, these measures cut taxes and fees for enterprises and residents by 2.36 trillion yuan ($364 billion). From January to November 2020, the figure reached 2.37 trillion yuan, and is estimated to exceed 2.5 trillion yuan by the end of year, said Cheng. 

Cheng noted that tax cut and fee reduction policies have effectively eased enterprises' cost burden, stepped up support for manufacturing and small and micro-sized enterprises, promoted the increase in enterprises' R&D investment, significantly increased people's income and spending power, and provided strong support to stabilize employment and protect people's livelihoods. 

The financial department will continue to improve the accuracy and effectiveness of these policies, added Cheng. 

Ren said that during the 13th Five-Year Plan (2016-20) period the SAT ensured that the taxation work revolved around the implementation of the tax and fee reduction policies, and continued to improve relevant systems in order to maximize the benefits from the tax cut and fee reduction. 

China cut 7.6 trillion yuan in taxes and fees during the 13th Five-Year Plan period, which effectively eased enterprises' burden, energized market players' vitality and enterprises' innovative motivation, promoted the steady recovery of enterprise production and operation, and achieved stable recovery of economic operations, added Ren. 

Also at the meeting, the CPPCC National Committee members exchanged views on issues such as further improvement of tax cut and fee reduction policies, technological innovation support, phased reduction and exemption of enterprises' social insurance premiums, law-based tax and fee collection, and credit management in tax payment.