China steps up taxation reform

Updated:Jan 11,2018 09:22 AM


According to the State Administration of Taxation, in 2017, taxation issues were mentioned during 24 of 34 State Council executive meetings, including optimization of the taxation system, tax relief, and further improvements in the business environment. This clearly demonstrates that tax occupies an exceedingly important place in governance.

Optimization of taxation system

Value-added tax (VAT) reform was a major concern of the State Council in 2017, for which a succession of arrangements were made, covering streamlining VAT rates, formulating detailed plans, legalizing VAT reform by abolishing business tax regulations, and introducing regulations in environmental protection, among others.

Taxation reform injects tremendous momentum into the development of market economy and plays a significant part in market regulation, economic restructuring, and the upgrading of drivers, said Yue Shumin, a professor at the School of Finance of Renmin University.

Tax relief

Tax relief is also a task of great importance, a key vehicle for a slew of economic policies, including mass entrepreneurship and innovation, sharing economy facilitation, and Made in China 2025.

The implementation work of tax cuts, based on actual conditions, was fulfilled by taxation authorities at all levels, bolstering economic restructuring and safeguarding people’s well-being, said Yang Zhiyong, a researcher at the National Academy of Economic Strategy of the Chinese Academy of Social Sciences.

Further improvements in business environment

Streamlining multiple certificates into one has been in full swing since April, for which the State Council stepped up related legalization and policies in a bid to uphold fairness and equity in the business environment.

In addition, taxation reform also acts as a capable driver, highlighting streamlining administration and delegating power while improving regulation, and enhancing public services. This will boost the construction of an internationalized and market-driven business environment that is fully regulated by the law, said Li Wanfu, head of the tax administration’s Taxation Research Center.