Practical business support
Anumber of potentially negative social factors can be only defused through China’s continuous economic and social development. Thus a key task for the Chinese government is supporting the competitiveness of domestic enterprises by providing better services and reducing taxes. What the government is trying to do, therefore, is to create a business environment in which small and medium-sized enterprises can survive the adverse economic situation, raise their efficiency and create jobs.
According to official data, more than 2 trillion yuan ($294 billion) in taxes was cumulatively cut for domestic enterprises from 2013 to 2016. And a series of new measures announced at a mid-June teleconference chaired by Premier Li Keqiang is expected to reduce the tax burden on domestic enterprises by a further 1 trillion yuan this year when implemented.
However, as Li said, to make up for the dwindling tax revenues resulting from the central government’s tax cuts, some local governments have increased the fees they charge enterprises and the fines they impose, under a variety of pretexts. So, to really implement the structural tax reduction program and lighten the tax burden on enterprises, the government should not only attach importance to the adoption of relevant policies, it should focus more on their implementation.
Practical measures should be taken to increase the transparency of the process and ensure the collection of taxes and fees is in accordance with the law.