Original title: (Economic Observation) China's individual industrial and commercial households have increased and reduced taxes and fees year by year, and the bailout effect has emerged
China News Agency, Beijing, December 19th (Reporter Zhao Jianhua) The three consecutive years of the epidemic have had an impact on market entities including individual industrial and commercial households, and the relief effect of continuous large-scale tax and fee reductions is constantly emerging.
The tax burden of tens of thousands of individual industrial and commercial households has been significantly reduced, and the number of individual industrial and commercial households in China has steadily increased from south to north and from east to west.
Since 2018, China has reduced taxes and fees for individual industrial and commercial households by a total of 1,385.5 billion yuan (RMB, the same below).
According to data released by the State Administration of Taxation, in the first 10 months of this year, individual industrial and commercial households enjoyed tax and fee reductions of 328.5 billion yuan, which is expected to be around 430 billion yuan for the whole year.
With the continuous release of tax and fee reduction effects, tax-related individual industrial and commercial households have steadily increased.
As of the end of October this year, the number of tax-related individual industrial and commercial households nationwide was 38.62 million, a net increase of 8.51 million compared with the end of 2018.
During the three years of the epidemic, the number of new tax-related individual industrial and commercial households across the country has increased year by year, reaching 5.29 million in 2020, 6.19 million in 2021, and 5.35 million from January to October this year.
Since the outbreak of the epidemic, China's preferential tax and fee policies to support the development of individual industrial and commercial households have been strengthened every year, expanded step by step, and progressively advanced.
In 2020, small-scale taxpayers, including individual industrial and commercial households, will be subject to a reduced value-added tax of 1% on taxable sales income subject to a 3% levy rate.
Individual industrial and commercial households are exempted from social insurance premiums in stages, and individual industrial and commercial households are allowed to defer the payment of personal income tax and social insurance premiums for the year.
In 2021, the value-added tax-free monthly sales of small-scale taxpayers, including individual industrial and commercial households, will be increased from 100,000 yuan to 150,000 yuan. On the basis of preferential policies, personal income tax is halved.
This year, China implemented a new combined tax and fee support policy to further increase support for individual industrial and commercial households.
Among them, individual industrial and commercial households can enjoy a large-scale value-added tax refund policy according to regulations, and the scope of the "six taxes and two fees" reduction policy has been expanded from small-scale VAT taxpayers to all individual industrial and commercial households.
Small-scale taxpayers, including individual industrial and commercial households, are exempted from value-added tax in stages.
Defer some taxes and fees for individual industrial and commercial households in the manufacturing industry.
Individual industrial and commercial households can also enjoy the policy of gradually reducing unemployment and work-related injury insurance premium rates and deferred payment of social insurance premiums according to regulations.
Today, preferential tax policies have covered all individual industrial and commercial households.
The tax burden of individual industrial and commercial households has been significantly reduced.
Although the number of new tax-related individual industrial and commercial households has been increasing, their tax payment scale has been decreasing.
According to data released by the State Administration of Taxation, from 2018 to 2021, the proportion of tax-paying individual industrial and commercial households in the country to all tax-related individual industrial and commercial households will basically remain at about 23% to 24%.
As of October this year, nearly 80% (79.2%) of individual industrial and commercial households do not need to pay taxes.
The average monthly tax payment of individual industrial and commercial households will drop from 1,329 yuan in 2018 to 646 yuan in 2022, a drop of more than 50%.
In 2018, individual industrial and commercial households across the country paid 114 billion yuan in taxes. This year, they are expected to pay about 58 billion yuan in taxes, which has dropped by half.
Tang Jiqiang, chief researcher and professor of the Xicai Think Tank at Southwestern University of Finance and Economics, said that a tax discount of tens of thousands of yuan can ease the operating pressure of individual industrial and commercial households, and even guarantee the daily expenses of their family.
The effects of preferential tax and fee policies that stabilize employment and protect people's livelihood are reflected faster and more intuitively in individual industrial and commercial households.
At present, some individual industrial and commercial households are still facing difficulties. Preferential policies such as tax and fee reductions should be continued next year, and those that should be optimized should be optimized.
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