Treasury official: The scale of tax cuts this year is not lower than last year

Zhou Chuanhua, director of the Comprehensive Department of the Ministry of Finance and Taxation, said at the 8th annual meeting of China's import and export enterprises that the policy of structural tax reduction will continue to be implemented in 2010, and some new tax reduction and exemption policies will be introduced. The tax scale will not be lower than in 2009.
Zhou Chuanhua said that the number of structural tax reduction policies implemented in 2009 was more than ten, and the scale of tax reduction was as high as 550 billion yuan. The current economic recovery is still not solid. In 2010, structural tax reduction policies will continue to be implemented and some The new tax reduction and exemption policy, including the business tax for individuals who have transferred their homes for less than five years, is levied according to the difference; the tax incentives for the laid-off workers to absorb employment policies are extended by one year; the income tax for small-scale and low-profit enterprises with an annual tax payment of less than 30,000 yuan is halved. The vehicle purchase tax for small-displacement vehicles below 1.6L is reduced by 7.5%; the tax support policy for supporting rural finance is introduced, and the tax policy for post-disaster reconstruction in Sichuan earthquake-stricken areas continues until the end of this year.
In addition, Zhou Chuanhua said that many of the structural tax reduction policies implemented in 2008 and 2009 were introduced in conjunction with the preferential tax system.
For example, the VAT transition and corporate income tax reduction policy has become an institutional arrangement and will continue to be implemented in 2010. Therefore, the scale of tax reduction in 2010 will not be lower than that in 2009.
However, this method of calculation has also been questioned by insiders. Generally speaking, the tax reduction is relative to the previous year. The tax reduction policy implemented two years ago cannot be double-counted.
Taking corporate income tax as an example, the enterprise income tax law was implemented in 2008, and the effect of tax reduction in the year of implementation of 2008 was more than 100 billion yuan. However, the Ministry of Finance still calculated the 2008 reform measures when introducing the 2009 structural tax reduction policy. Zhou Chuanhua's calculation method is similar.
 

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