**The Economic Work Conference "set the tone" for next year's macro policy, emphasizing that "the active fiscal policy should be moderately strengthened, and the quality and efficiency should be improved". Tax and fee reduction is an important tool of fiscal policy, and the meeting called for "implementing structural tax and fee reduction policies, focusing on supporting scientific and technological innovation and manufacturing development".
Structural tax and fee reductions are different from inclusive and comprehensive tax and fee reductions, and mainly reduce the tax burden for specific groups or fields and specific types of taxes. In previous years, "structural tax reduction" or "combination of inclusive tax reduction and structural tax reduction" have been implemented. China has implemented large-scale tax cuts and fee reductions for many years, and the macro tax burden has been at a low level. At present, although there is still room for further tax cuts, there are certain restrictions. In order to achieve sustainable fiscal and tax operations, it is necessary to shift from emphasizing scale to effect, balancing the relationship between "current and long-term" and "need and possibility", and using policy resources on the cutting edge and at key points. Because of this, it is of great practical significance to mention "structural tax and fee reductions".
The staff of the Minqing County Taxation Bureau of the State Administration of Taxation introduced the preferential tax policies to the person in charge of the enterprise. Photo by Zhou Yi (Xinhua News Agency).
"Structural" means that there is a focus, and it has previously been aimed at small and micro enterprises, or focused on value-added tax, income tax, etc., which have played different policy effects. This year's emphasis on "focusing on supporting scientific and technological innovation and the development of the manufacturing industry" reflects precise regulation and control, with obvious pertinence and guidance, which is conducive to enhancing new momentum for development and promoting high-quality development.
In recent years, a series of tax policies to support scientific and technological innovation have been implemented one after another, and a set of tax support policy systems with wide coverage, strong preferential treatment, and covering all aspects of the whole process of enterprise innovation have been initially formed. For example, the pre-tax deduction ratio of R&D expenses of enterprises in related industries will be increased, and this policy will be implemented as an institutional arrangement for a long time. The more R&D investment an enterprise has, the more tax reductions it will have, which will effectively guide enterprises to increase R&D investment and enhance innovation momentum. In addition, preferential tax policies have been implemented to encourage venture capital, support the renewal of R&D equipment, support key industrial chains, and encourage entrepreneurship and innovation. These policies promote high-level scientific and technological self-reliance and self-improvement through positive incentives of "real gold".
At the same time, a considerable part of the current tax and fee reduction policies are closely related to the manufacturing industry. For example, the manufacturing industry occupies the main position of R&D, and the number and amount of households enjoying the policy of additional deduction of R&D expenses account for more than half of all R&D enterprises. In addition, there are a series of preferential policies specifically for the manufacturing industry, such as value-added tax deduction for advanced manufacturing enterprises. Statistics show that in the first 10 months of this year, the country's new tax cuts and fee reductions and tax refunds and deferrals exceeded 16 trillion yuan, manufacturing and related wholesale and retail trade is the industry with the largest proportion of preferential treatment, the most obvious benefit.
Scientific and technological innovation is an important engine to promote high-quality development, and the manufacturing industry is the main body of the real economy and an important force for absorbing employment. It can be said that scientific and technological innovation and the high-quality development of the manufacturing industry are related to the overall situation of high-quality development. Although with the support of policies, scientific and technological innovation and manufacturing have made great progress, they are still facing severe difficulties and competition, and are in the stage of "climbing over hurdles". It is necessary to open up new fields and new tracks for development with scientific and technological innovation, shape new momentum and new advantages for development, consolidate the main position of enterprise innovation, and promote the development of manufacturing industry. The tax policy has an important guiding and incentive role, and it is necessary to improve the level of scientific and technological innovation through precise policies, especially to promote enterprises from "manufacturing" to "intelligent manufacturing", and at the same time help the manufacturing industry to travel lightly and develop at a high level. In the next step, on the basis of the implementation of the existing measures, it is worth looking forward to how the structural tax reduction will further support the development of scientific and technological innovation and manufacturing industry.
The issue of relief for small and micro enterprises and individual industrial and commercial households has received great attention and has always been the focus of tax and fee reduction. Through the implementation of a series of preferential policies, the tax burden of this group has been at a very low level. According to 2022 data, about 70% of small and micro enterprises and individual industrial and commercial households do not need to pay taxes. On the basis of optimization and improvement, this year, the preferential tax policies involving small and micro enterprises and individual industrial and commercial households will be extended to the end of 2027. Next year, the implementation of these policies will continue to help small and micro enterprises and individual industrial and commercial households enhance their development stamina and better cope with various difficulties and challenges.
* The Economic Work Conference proposed that "a new round of fiscal and taxation system reform should be planned". It is necessary to consider tax reduction and fee reduction in the reform of the tax system, improve the level of institutionalization, optimize the tax structure, and further stabilize market expectations. Through the coordinated efforts of fiscal, monetary, employment, industrial and other macroeconomic policies, the economic rebound will be further consolidated and strengthened.
The author Zeng Jinhua), the original title is "Structural Tax Cuts Enhance the Momentum of High-quality Development".
*:Economy**.