Premier Li Keqiang presided over an executive meeting of the State Council on March 31, to further stimulate the vitality of market entities and enhance the sustainability of development, and introduced new measures to deepen the reform of "delegating power, delegating power, and providing services". We will make plans to cut taxes and fees, and implement and improve tax reduction policies for small and micro businesses and self-employed businesses.

The meeting pointed out that in accordance with the arrangements of the CPC Central Committee and the State Council, to do a solid job in the work of "six guarantees" and fully implement the tasks of "six guarantees", it is necessary to make a scientific analysis of the current economic situation, keep a clear head, take further concrete measures to ensure "stability", consolidate the foundation of "stability", and promote the stable operation of the economy, improve the quality and efficiency.

The meeting decided on specific measures to deepen the reform of "delegating power, delegating power, and providing services" to further stimulate the vitality of market entities, promote stable employment and ensure people's livelihood. First, we will improve the employment environment. We will reduce the number of vocational qualifications for admission, and promote the identification of socialized vocational skill levels. We will support the healthy development of new forms of employment. We will advance the trial of occupational injury insurance for flexible employment, expand the coverage of work-related injury insurance, and protect the legitimate rights and interests of people with flexible employment. Second, we will cut the number of procedures, materials, time frames and costs involved in enterprise approval. We will speed up the electronic registration of trademark and patent applications. We will reduce customs clearance and inspection rates for law-abiding enterprises and low-risk commodities. Consolidate port charges. Third, we will support expanding domestic demand. We will clean up illegal restrictions on the purchase of second-hand cars, and reasonably relax market access for tourism, home accommodation and other services. Fourth, we will improve the supply of services to improve people's wellbeing. More services related to people's livelihood will be handled across provinces. We will promote the development of institutions for the elderly by bringing in non-government forces to expand their capacity and improve their operations and service quality. Fifth, we will further promote impartial regulation. We will take impartial oversight as the necessary guarantee for streamlining administration and delegating power. We will ensure that government departments are responsible for their oversight, improve regulatory rules and standards, establish a benchmark system for exercising administrative discretion, innovate and strengthen oversight during and after operations, and exercise strict oversight over matters that affect the lives and health of the people and public safety. Through deepening reform, we will unleash vitality, promote fairness in administration, and improve efficiency.

The meeting pointed out that this year, while adjusting some phased policies, we will not make "sharp turns" and take hedging measures to help market players recover and consolidate the foundation for economic recovery. The meeting confirmed preferential tax policies to further support small and micro businesses, self-employed industrial and commercial households and advanced manufacturing industries. From January 1 this year to the end of next year, for small and micro businesses and individual businesses whose annual taxable income is less than 1 million yuan, on the basis of the current preferential policies, the income tax will be further halved to further reduce the actual tax burden. Second, from April 1 this year to the end of next year, the VAT threshold for small and micro enterprises, individual businesses and other small-scale taxpayers will be raised from the current monthly sales volume of 100,000 yuan to 150,000 yuan. Third, starting from April 1 this year, enterprises in manufacturing industries such as transportation equipment, electrical machinery, instruments and meters, pharmaceuticals and chemical fibers will be included in the VAT retention tax rebate policy for advanced manufacturing enterprises, and the incremental retention tax credit will be returned in full on a monthly basis. Together with the preferential tax policies already in place, the above policies are expected to increase tax cuts by over 550 billion yuan for the year. The meeting stressed that while implementing the tax reduction policy, we will reduce non-tax revenue in an orderly and reasonable way and resolutely prevent arbitrary charges under various names from increasing the burden on enterprises. The meeting called for more fair and inclusive policies and reforms to bring more benefits to market entities and boost their activity. At the same time, we will guide local governments to appropriately reduce the government leverage ratio through the recovery growth of government revenue, prevent blind expansion of new businesses, and enhance fiscal sustainability.

The meeting also looked at other matters.

Source: State-owned Assets and Administration Commission of the State Council