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Full text: Report on China's central, local budgets(17)

2013-02-28 14:28 Xinhua     Web Editor: Mo Hong'e comment

In following a proactive fiscal policy, we must focus on the following areas.

First, we need to improve structural tax cut policies to reduce the burden on businesses and consumers. We will enforce the revised Law on Individual Income Tax, and implement the policy of raising VAT and business tax thresholds and other policies designed to relieve the tax and fee burden on small and micro businesses. We will implement a preferential policy to halve the income tax on small businesses with low profits. We will carry out pilot projects to replace business tax with VAT, and steadily extend the trials to more areas in order to spur the development of the service sector, particularly the modern service sector. We will reduce tariffs on some imported commodities and increase imports of energy and resource products, advanced equipment, and key parts and components. We will expand trials of a tax on the income of logistics enterprises after deductions, improve the policy on urban land-use tax imposed on land for warehousing major commodities, and eliminate VAT on vegetable wholesalers and retailers, so as to reduce the tax burden on logistics enterprises and those who produce and distribute agricultural products. We will earnestly implement all other tax relief and exemption policies in accordance with the law. We will also review and eliminate some administrative charges on enterprises.

Second, we need to increase people's incomes to boost their purchasing power. We will put into effect a more proactive employment policy, and implement the minimum wage system. We will increase government subsidies to raise the incomes of urban and rural residents, particularly those in low- and middle-income brackets; reduce people's burden of paying for education, medical services, and housing; and increase their purchasing power. We will support the development of goods distribution networks, and create a good consumption environment.

Third, we need to further optimize the structure of government spending to maintain and improve living standards. We need to maintain a large scale of government spending so that we can increase expenditures on ensuring and improving living standards; direct more funds toward the primary level, rural and remote areas, and groups with financial difficulties; and more quickly develop education, medical and health care, social security, employment, low-income housing, public culture, and other social programs. We will optimize the structure of investments to shore up weak links in economic and social development, strictly control new projects to prevent redundant construction, and seriously limit administrative expenses and other regular expenditures to bring down administrative costs.

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