Saving the economy is the biggest consensus from the central government to the local government and from the top to the society in recent months.
"Affected by unfavorable factors that exceed expectations, the current downward pressure on the economy continues to increase, and many market players are very difficult." Regarding the current challenges facing China's economy, the central government has summarized them as demand contraction, supply shocks and weakening expectations.
The complexity of the situation is incomparable to past economic downturns.
In response to the difficulties and problems faced by China's economic operation, finance has carried the banner.
It is extremely necessary and urgent to exert financial power. However, how much power is exerted, where and how to exert power, must be based on accurate research and judgment of the problem, and prescribe the right medicine.
The central government’s proactive fiscal policy now reflects a package of features, including tax cuts, tax rebates, payment deferrals, special bonds, financing guarantees, etc. It is hoped that the multi-pronged policy effect will further enhance market confidence and help stabilize the economy Basic disk.
However, the so-called "package" policy is neither new nor hot, and the effect is minimal, and it can only be said to play a "background" role.
Why so?
In a nutshell - Finance still used the "old method" this time. However, the times are also changing, and the old method cannot solve the predicament.
Affected by the new crown epidemic, small and medium-sized enterprises are facing greater financial and operational pressure.
(Xinhua News Agency)
The so-called "old method" is mainly reflected in two aspects.
The first aspect - large-scale VAT credits and refunds.
This is a key measure to deal with the downward pressure on the economy and stabilize the macroeconomic market.
Statistics show that from April 1 to May 16, a total of 979.6 billion yuan (RMB, the same below) was refunded to the corporate account. In addition, the implementation of the previously introduced value-added tax tax refund system continued in the previous quarter. The policy is 123.3 billion yuan, and 1,102.9 billion yuan of tax refunds have been refunded to taxpayer accounts.
Affected by the recent impact of the new crown pneumonia epidemic, Chinese enterprises are facing greater financial and operational pressure. The scope of supported industries and the amount of support for tax refunds have increased simultaneously. Greater tax and fee reductions can naturally help enterprises to a certain extent. .
Tax and fee reduction is an achievement that the Chinese government can definitely boast about.
However, the immediate problem faced by many companies today is that they cannot pay the tax at all. How can they pay first and then refund it?
When Premier Li Keqiang answered the reporter's question, the most touching sentence was: "The shops in Changxiang Lane are full of steam, which is the bustling world of fireworks. If the store is closed, it will not be good luck, and the lives of ordinary people will be affected." However, The Prime Minister knows, how many of these shops in the long alleys of the city may not be able to pay the tax at all?
How many do not wait for the government's tax refund and may close down?
For details, please read the 321st issue of "Hong Kong 01" e-Weekly Newsletter (June 13, 2022) "
How to Make Fiscal Forces to Make No Wrong Payment?
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