Levy VAT pilot reform of business tax reform, a variety

Levy VAT pilot reform of business tax reform, a variety of tariffs on imports of goods down 730 small profit income tax benefits and a series of structural tax policies into effect on January 1, 2012. The experts said that the new structural tax cuts to some businesses and individuals to effectively reduce the tax burden at the same time, highlighting the focal point to promote the economic structural adjustment policies to stimulate consumption.

Adjustment of economic structure, transform the mode of economic development has been the focus of tax policy to support. The last day of 2011, the State Administration of Taxation news release said that Shanghai is ready to carry out the work of the business tax reform to levy VAT pilot. Since January 1, 2012, China formally launched in Shanghai transportation and some of the modern service industry business tax reform to levy VAT pilot. The above disclosed that so far have been 120 000 confirmed included in the scope Bluetooth Keyboard of the pilot (of which nearly 35,000 taxpayers in general, small-scale taxpayers, 85000).

As another important 2012 to improve the structural tax cuts, the lower part of the tariffs on imported goods in China and is also highly anticipated. Partially adjusted according to the notice of the previously issued by the Ministry of Finance since January 1, 2012, China's import and export tariffs will be more than 730 kinds of commodities lower provisional import tax rate, the average rate of 4.4 percent, compared with MFN rates low for more than 50%. Generally believed that the expansion of imports tax cuts will help push forward industrial restructuring and expansion of consumption.

Moreover, tax incentives for SMEs further stepped. Ministry of Finance, December 2011, the State Administration of Taxation jointly issued a clear order to further support the development of small enterprises with low profits, since January 1, 2012 to 2015 December 31, 2010, the taxable income of less than $ 60,000 ( small profit with 6 million), its income reduced rate of 50% included in taxable income and pay enterprise income tax rate of 20%.

In addition, the tax guide efforts to increase energy saving is also a bright spot in 2012. Travel tax law is formally implemented on January 1, 2012, made to reduce the tax burden on passenger cars, respectively, unchanged and improved structural adjustment. Among them, the total existing passenger cars accounted for 87% displacement of 2.0 liters and below, the displacement of small passenger cars, the tax rate appropriate to reduce or remain unchanged. At the same time, the travel of energy conservation, new energy sources to make the provisions of the tax exempted or reduced travel.

Well-known economist, Yanjing Overseas Chinese University, Watson told the Economic Information Daily in an interview that the entire tax reform should be directed towards increasing direct taxes, reduce indirect taxes. In his view, the focus must be on tax cuts in the next step in the indirect taxes. "Indirect taxes are borne by the people, in this regard, the first is the value-added tax reform, such as business tax reform of VAT to speed up the pace, another VAT rate to be adjusted downwards."

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