The large-scale tax rebate policy has been implemented to provide strong support for stabilizing the economy

The executive meeting of the State Council held on March 21 determined the policy arrangements for the implementation of large-scale value-added tax credits and refunds, which provided strong support for stabilizing the macroeconomic market
.

The meeting decided to refund nearly 1 trillion yuan to small and micro enterprises in all industries and individual industrial and commercial households that pay taxes according to the general tax calculation method
.
Among them, the existing tax credit will be refunded in full before the end of June, and the incremental amount will be refunded in full monthly from April 1
.

We learned from the State Administration of Taxation that on April 1, the first day of the implementation of the VAT credit and refund policy, eligible micro-enterprises officially started to process the residual credit tax refund and other businesses.
The tax refund "gift package"
.

The tax refund is the refund of the tax that has not been deducted at the end of the value-added tax period to the taxpayer
.
The value-added tax implements a chain deduction mechanism, and the taxable amount is the balance after deducting the input tax from the taxpayer's current output tax
.
Among them, output tax refers to the value-added tax calculated based on sales and applicable tax rates; input tax refers to the value-added tax borne by the purchase of raw materials
.
When the input tax is greater than the output tax, the input tax that has not been fully deducted will form a tax credit
.

According to statistics, from 2019 to 2021, the tax department has handled a total of 1.
2339 trillion yuan in tax refunds.
From the perspective of implementation, the tax refund policy is large in scale, accurate in direction and good in effect, which has played a role in promoting the high-quality development of the real economy such as manufacturing.
Active promotion
.

This year, the CPC Central Committee and the State Council have decided to implement a new combined tax and fee support policy, of which the large-scale VAT credit and refund policy is the "highlight"
.

According to Xie Wen, Director-General of the Department of Goods and Services Tax of the State Administration of Taxation, the tax refund is an important institutional arrangement for China's value-added tax
.
This year's tax rebate policy is large in scale, heavy in weight, and has many benefits for market players, which is of great significance in many aspects
.

On the one hand, it will help stabilize the macroeconomic market
.
At present, China's economy is facing the triple pressure of demand contraction, supply shock, and weakening expectations.
We will implement large-scale tax rebates and favor small and micro enterprises, manufacturing and other key industries, encourage enterprises to increase capital, expand production, transform and upgrade, and boost the confidence of market players.
It is an important measure to strengthen cross-cyclical and counter-cyclical adjustment and provide strong support for stabilizing the macroeconomic market
.

On the other hand, it will help market entities to bail out and develop
.
This year's new tax rebate policy will add about 1.
5 trillion yuan of cash flow to market entities, and refund taxes to enterprises in the form of "real money", which will directly increase the immediate income of enterprises.
Enterprises that are in urgent need of financial support can play the role of helping one, tide over difficulties, and help one way, and help enterprises to go into battle lightly in production and operation
.

At the same time, it will help to optimize and improve the value-added tax system
.
In recent years, China has continued to reform and improve the value-added tax system
.
The implementation of large-scale tax refunds this year is conducive to making the design of the value-added tax system more scientific, complete and balanced
.
In the long run, it is conducive to creating a more favorable tax system environment for the development of enterprises
.

According to Xie Wen, compared with previous years' tax rebate policy, this year's new policy for tax rebate is stronger, wider and deeper
.

In terms of policy coverage, it not only fully covers small and micro enterprises, but also focuses on six major industries
.
Among the enterprises benefited by the tax rebate policy this year, the number of small and micro enterprises will account for more than 90%; the scale of newly added tax rebates in the manufacturing industry will account for about 30%, the largest among all industries
.
By focusing on the operation of the national economy and the key points and key links in the industrial chain and supply chain, the tax rebate bonus and reform effect will be released precisely
.

It not only expands the scope of incremental full tax refund, but also involves the remaining tax credit for the first time
.
Based on the previous full refund of incremental tax credits for advanced manufacturing, this year, six major industries including small and micro enterprises and manufacturing have been included in the scope of incremental 100% tax refunds, and the existing tax credits of these enterprises will be refunded for the first time.
Unprecedented in strength and scale
.

It not only strengthens the protection of the central government, but also actively plays the role of local governments
.
In order to ensure that the implementation of the tax refund policy is not compromised, the central government has increased transfer payments this year, and local governments have also actively raised funds.
The scale and security of tax refunds are the highest in history
.

Li Xuhong, director of the Institute of Fiscal and Taxation Policy and Application of Beijing National Accounting Institute, said in an interview with a reporter from People's Daily Online that further increasing the implementation of the VAT refund system at the end of the period will not only help optimize the VAT system, but also reflect the neutrality of VAT.
In line with international practice, it also reflects the effectiveness of China's modern tax system reform
.

Li Xuhong pointed out that this is a major benefit for small, medium and micro enterprises, transportation and other difficult industries, as well as manufacturing, technology-based enterprises and other strategically oriented industries in the country's high-quality development, especially for enterprises with large investment scale and high historical capital accumulation.
This time, the stock and incremental tax rebates are combined.
The return of tax rebate funds to enterprises has released the vitality of the pillar industries of the national economy on a larger scale.
's signal
.

Zhang Bin, vice president and researcher of the University of Chinese Academy of Social Sciences, told the People's Daily Online reporter that facing the complex and severe domestic and international situation, China is facing new downward pressure on the economy, and it is very important to maintain the stable operation of the economy
.
Implementing large-scale retained tax rebates and substantially digesting the remaining tax credits are the main measures of this year's combined tax and fee support policy, which will provide market players with a cash flow of about 1.
5 trillion yuan, which will effectively ease the financial pressure of enterprises and help enterprises survive development, thereby playing an important role in macroeconomic stability
.

"At the same time, the amount of tax retained at the end of the period will be changed from a carry-over to the next period to a current tax refund, which will reduce the capital cost of enterprises in the system, and is conducive to enhancing the confidence and expectation of enterprise development.
Reform measures
.
" Zhang Bin said
.

Xie Wen said that in the next step, the taxation departments at all levels will, under the leadership of the party committees and governments at all levels, play the role of the coordination mechanism of finance, taxation, the People's Bank of China and other departments, and continue to focus on implementation, service, quality and efficiency, and strong supervision.
We will make every effort to ensure that the retained tax refund policy is detailed and implemented in detail.
At the same time, we will strictly strengthen the review of the application for retained tax refund, identify risks in a timely manner, and take differentiated responses according to the risk level, especially strict prevention and crackdown.
The illegal act of defrauding the remaining value-added tax refunds will escort the smooth implementation of the remaining tax refunds
.