VAT exemption for vegetable wholesale and retail next year

The just-concluded Central Economic Work Conference proposed that in 2012, we must continue to improve the structural tax cuts. How will the structural tax cut policies take off again next year? In response, Minister of Finance Xie Xuren explained the road map for improving structural tax cuts next year at the National Financial Work Conference held on the 25th.

Reduce import tariffs and promote industrial restructuring

As an important part of improving structural tax cuts next year, Xie Xuren pointed out that in 2012 China will reduce tariffs on some imported goods and increase imports of energy resources products, advanced equipment and key components.

The Ministry of Finance announced in the middle of this month that, starting from January 1, 2012, China’s import and export tariffs will be partially adjusted, and a tentative tax rate for imports will be implemented for more than 730 commodities. The average tax rate is 4.4%, which is higher than that of most favored countries. The tax rate is 50% lower.

Experts said that under the background of the slowdown in global economic growth and the reduction of imports by some countries, China’s tax reduction measures for expanding imports will help advance industrial restructuring and expand consumption.

Reducing the burden on small and micro enterprises

Facing the complicated domestic and international economic situation, how to reduce the burden on small and micro enterprises has always been a hot spot of social concern.

Xie Xuren pointed out that next year will continue to implement various policies to increase the value-added tax, business tax threshold, etc. to reduce the tax burden on small and micro enterprises. To implement the preferential income tax policy for small and micro enterprises, for small and micro enterprises with an annual taxable income of less than 60,000 yuan, their income shall be calculated as taxable income at 50%, and corporate income tax shall be paid at 20%.

In addition, he emphasized that next year all other taxes and fee reductions and exemptions must be implemented, unreasonable and unlawful enterprises involved in charging fees be eliminated, and the tolls for highways should be fully cleared and standardized so as to reduce the burden on enterprises and society.

Business tax reform to reform VAT reform pilot steadily

Starting from January 1, 2012, China will carry out business tax levy VAT pilots in Shanghai's transportation industry and some modern service industries. This reform helps to eliminate double taxation and reduce corporate tax burden.

For this reform pilot, Xie Xuren stated at the meeting that the implementation of the trial reform of the reform of business tax to value-added tax in some productive service industries is an important measure for the improvement of China's VAT system. China will gradually resolve the taxation policy for goods and services from the system. Coordination issues.

He emphasized that based on the Shanghai traffic and transportation industry and some modern service industries, they will expand the scope of pilot projects steadily, and promote the development of the service industry, especially the modern service industry.

In addition, next year, China will also expand the scope of taxation for business tax balances for logistics companies, and implement the policy of supporting urban land use taxation for land use for logistics warehousing facilities. The wholesale and retail of vegetables are exempt from VAT.

Resource tax and consumption tax lead tax reform

When talking about the reform of the taxation system next year, Xie Xuren pointed out that in addition to improving the value-added tax system, next year will also promote the development of a number of taxation system reforms such as resource tax and consumption tax.

Xie Xuren said that next year China will comprehensively promote the reform of resource taxes, expand the range of ad valorem prices, and promote resource conservation and environmental protection. Summarize the pilot experience of real estate tax reform and steadily push forward the reform of real estate tax reform.

As an important measure to expand domestic demand, next year China will further improve the consumption tax system, rationally adjust the scope of consumption tax and the tax rate structure, promote energy-saving emission reduction and guide rational consumption.

In addition, he pointed out that next year it is necessary to further promote the reform of urban maintenance and construction taxes, study and formulate environmental protection tax and fee reform plans, and continue to clean up and integrate administrative fees and government funds in accordance with the principle of tax clearance and classification.