[Comprehensive] State Department: From May 1, the value-added tax rate for manufacturing and other VAT fell from 17% to 16%.

On March 28, the Chinese government website reported that Premier Li Keqiang of the State Council presided over the State Council Executive Meeting on March 28 to determine measures to deepen the reform of the value-added tax to further reduce the tax burden on the market; and decided to establish a national financing guarantee fund to promote the mitigation of small and micro enterprises. "Farmers, rural areas, and other financing problems; listen to reports on the state of the State Council's institutional reforms to ensure that institutions are reset and their functions are adjusted in time; discussed and adopted the "Working Rules of the State Council (Revised Draft)."

The meeting pointed out that in the past five years, cumulative tax reductions have increased by 2.1 trillion yuan through the implementation of the camp reform. In accordance with the arrangements of the Party Central Committee and the State Council, in order to further improve the taxation system and support the development of the real economy such as the manufacturing industry and small and micro enterprises, and continue to reduce the burden on the market, the meeting decided that from May 1, 2018, the first is to add value to the manufacturing industry. The tax rate has dropped from 17% to 16%, and the value-added tax rate for goods such as transportation, construction, basic telecommunication services, and agricultural products has dropped from 11% to 10%. It is expected that tax reductions of 240 billion yuan will be achieved throughout the year. The second is the unified standard for VAT small-scale taxpayers. To increase the annual sales standard for small-scale taxpayers of industrial and commercial enterprises from 500,000 yuan and 800,000 yuan to 5 million yuan, and allow companies registered as ordinary taxpayers to be registered as small-scale taxpayers within a certain period of time. , allowing more companies to enjoy tax reductions at lower rates. Third, the input tax that has not been deducted for a certain period of time, such as equipment manufacturing, advanced manufacturing, R&D and other modern service industries, and grid companies, will be refunded once. The implementation of the above three measures will reduce the tax burden of market entities by more than 400 billion yuan in the whole year, and domestic and foreign-funded enterprises will all benefit equally.

In accordance with the “Government Work Report” on the expansion of inclusive financial services and better service of the real economy, the meeting decided that the central finance initiative and joint willing financial institutions should jointly establish a national financing guarantee fund with the initial funding of not less than 600 yuan. 100 million yuan, in the form of equity investment, re-guarantee, and other forms of support for provinces (autonomous regions, municipalities) to carry out financing guarantee business, and drive all parties to support small and micro enterprises, "three rural" and entrepreneurial innovation. At the same time, we will strengthen the construction of a social credit system. According to the principle of “government support, market operation, cost-saving, profit-making, and risk control,” the fund will be market-oriented in making decisions and operating. According to preliminary calculations, in the next three years, the Fund will support a total of RMB 500 billion in related guarantee loans, accounting for approximately one-fourth of the existing nationwide financing guarantee business, and focus on alleviating financing difficulties and financing in small and micro enterprises, “three rural issues” and other inclusive areas. You support the development of strategic emerging industries.

The meeting pointed out that the State Council’s institutional reform is a major event of the State Council this year. The State Council has set up a special coordination group and related work is being actively and steadily promoted. The meeting called for unifying ideas and actions in the decision-making and deployment of the Party Central Committee, combining the deepening of institutional reforms with "distribution of the service", and focusing on transforming and optimizing government functions. Adhere to the consistent powers and responsibilities, make daily management fulfill responsibility, respond to emergencies and complement each other, form a concerted effort, and never allow management “dead ends” to ensure that the State Council’s institutional reforms and economic and social development work are smooth, orderly and coordinated, ensuring Complete the development of the main goals and tasks throughout the year.

The meeting adopted the "Working Rules of the State Council (Revised Draft)" and decided to submit the first plenary meeting of the State Council for deliberation.