23 cost reduction

By the end of the year, the National Development and Reform Commission and other ministries and commissions had carried out thorough research, analysis and judgment on the completion of the annual cost reduction "list" tasks and actual results, and began to formulate ideas for the work of cost reduction next year. So far, all the 23 cost-cutting measures announced in July this year have been implemented, with more than 2.5 trillion yuan in additional tax and fee reductions for the whole year. Together with the reduction in logistics, energy and other costs, a total of trillions of yuan of cost-cutting dividends will be delivered directly to entities. Looking ahead to next year, the industry said it will use more reform methods to reduce negative space, such as tax reform to obtain further room for tax cuts.

Reporters learned that the National Development and Reform Commission's Economic Operation Regulation Bureau recently held a meeting of departments working to reduce costs in 2020, systematically sorted out and summarized the progress and results of the work so far this year, discussed the difficulties and problems facing the current work to reduce costs, discussed the ideas and preliminary consideration for next year's work. The Ministry of Industry and Information Technology, the Ministry of Finance, the People's Bank of China and other 27 members of the inter-ministerial joint meeting on reducing costs of enterprises in the real economy attended the meeting.

In July, the epidemic prevention and control and as a whole under the background of economic and social development, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Finance, four departments jointly issued by the people's bank of do a good job notice 2020 focus on cost reduction, 23 key tasks include the tax burden in many aspects, logistics, financing, can use content, annual cost reduction for refining the path diagram, has been clear about the specification.

So far, the list is complete. In tax cuts JiangFei aspects, for example, since this year, the enforcement of the fiscal and taxation department 7 group of 28 breaks the big tax cuts JiangFei measures, including support for epidemic prevention and control for emergency measures, also has the help greatly influenced by the outbreak difficult the measures of the industry, and support enterprises to return to work rehabilitation measures, especially focusing on helping small micro enterprise survive, further to increase support of taxes and fees. These policies and measures, together with massive tax cuts and fees last year, are expected to add more than 2.5 trillion yuan to the burden of enterprises this year.

Data from the Ministry of Transport showed that logistics costs were reduced by more than 99 billion yuan in the first half of this year, more than for all of last year. Dai Dongchang, vice minister of The Ministry of Transport, said at a press conference that it is expected to reduce logistics costs by more than 130 billion yuan this year through optimizing administrative procedures and deepening the promotion of transport logistics certification to reduce fees, improve quality and increase efficiency.

Electricity price is the most sensitive factor of production for general industrial and commercial and large industrial users. This year, China will again implement the policy of reducing electricity prices for general industry and commerce by 5 percent, on the basis of the 10 percent reduction in the previous two years. At the same time, "gift packages" such as supportive two-part tariff policy and 5G electricity cost reduction have also been introduced. It is estimated that over 110 billion yuan will be exempted from electricity charges throughout the year.

With the joint efforts of all sides, a series of measures to reduce costs have been effectively implemented, and the policy effect is gradually showing. This year, China's economic indicators can be "positive", the sustained and steady economic recovery, cannot do without the role of reducing costs.

For example, in the first 10 months of this year, a total of 2.230161 trillion yuan of new tax cuts were made, including 746.112 billion yuan in new tax cuts and 148.449 billion yuan in new fee cuts.

"In general, this year's tax cuts JiangFei policy in response to the outbreak, buy-backs and relative to GDP, from all around the world to see," the industry pundits noted that massive tax cuts JiangFei through enhancing periodic policy, and the combination of institutional arrangement, the release of massive tax cuts JiangFei bonuses, effective hedge outbreak, to support the prevention and control, help enterprises to survive, and promote economic growth has played an important role in recovery.

"Enterprises are gaining a growing sense of benefits from policies such as tax cuts and financial support," Meng Wei, spokesman for the National Development and Reform Commission, said Tuesday. According to the survey results, 42.3% of small manufacturers reported being short of funds in November, down 2.6 percentage points from the previous month and the lowest level so far this year.

Xiamen university, China center for economic research professor Sun Chuanwang energy to the economic information daily, reporters that this year the biggest characteristic of cost reduction policy is "multi-angle, all-round, effective and quality", both the tax cuts JiangFei, financial support and reduce the system cost and macro policy, also cover the land, labor, electricity, logistics, and production process, such as specific cost and details. From the perspective of operational effectiveness, the cost reduction measures effectively offset the pressure faced by the production and operation of real enterprises, and promoted the overall economic and social recovery and smooth operation.

The reporter understands, the next step, the Ministry of Finance, taxation and other related departments will strengthen guidance and supervision, industry continue to pay close attention to the tax change, tracking effect monitoring and analysis, research local and enterprise reflects the significant problem, help enterprises to use with good policy, to better promote the enterprise to return to work and production and economy running smoothly.

Meng wei said that there are still uncertainties in the epidemic and the external environment, the recovery of some industries is not very optimistic, and some small and micro businesses and export enterprises are still facing many difficulties. In this regard, the National Development and Reform Commission will continue to strengthen tracking analysis, the implementation of detailed policies to consolidate the good momentum of economic recovery.

At present, the relevant ministries and local governments have begun to study the brewing next year to reduce costs work ideas. More reform measures are expected to be adopted next year to reduce the negative space, industry experts said.

Liu Shangxi, president of the Chinese Academy of Fiscal Sciences, said that currently, there are some phased policy arrangements for the tax and fee cuts, which will involve how to improve the system in the future. Tax cuts should also be combined with the improvement of the tax system, including the reform of the social security system and the tax revenue system. Next year, more tax reform should be carried out to gain further space to reduce the burden.

"In the future, we should appropriately reduce the proportion of indirect tax and increase the proportion of direct tax." Xu Xianchun, professor of Economics and Management School of Tsinghua University and former deputy director of The National Bureau of Statistics, also pointed out that a moderate reduction in the proportion of indirect tax will help enterprises reduce production costs and play a fair role in taxation. It is conducive to the new economy enterprises with large investment in the early stage to reduce tax burden and promote the growth of new economy enterprises.

"In the future, we will continue to increase efforts to reduce costs. The premise of effective guarantee measures is sound development. The key to solving this problem is to further optimize resource allocation and promote the rationalization of factor prices." Sun Chuanwang pointed out that the transformation of structural mode and mechanism system should be used to fundamentally improve efficiency so as to reduce costs and drive high-quality economic development. "Ultimately, policies should be adopted to deliver reform dividends to real enterprises, boost their confidence in development and strengthen the internal driving force for economic operation. This is the ultimate goal of cost reduction."