As of the end of February this year, several major industries producer price index (PPI) had 48 consecutive months of negative growth state, which several major industries of the entire industrial PPI decreased contribution accounted for 70% -80%. Other industries, including small and medium private enterprises operating difficulties most, in fact, a large number of companies have closed down. In the first two months of 2016, China’s exports were down cliff-style signs.
In this macro-economic pattern, personal tax cuts to businesses and family burdens, performed Chinese economic supply side structural reforms to become a social consensus, the business community and the community would like to see more specific policy measures related to tax cuts.
In the “two sessions” this year, Premier Li Keqiang camp changed to increase the proposed tax cuts drop fee three main measures, is expected to be 500 billion yuan to enterprises and individuals of “burden.” But this seems to have said a few years, this year is not yet complete tax reform camp changed to increase the construction, real estate, financial services and life services and other areas of the industry to bring these to give real tax reduction amount.
So far, reducing the VAT rate in manufacturing, the Government does not plan to reduce existing taxes, but some additional research in new taxes (such as the National Pu levy property tax, inheritance tax, etc.), it is now still be considered, Save tax policy remains the government’s macroeconomic management under China’s economic growth downward pattern of the missing link.