Li Keqiang: Reduce the current 16% tax rate in manufacturing and other industries to 13%.

The second session of the 13th National People’s Congress opened on March 5 in the Great Hall of the People. Premier Li Keqiang made a report on the work of the government.

Li Keqiang said Government would implement a larger tax cut. Inclusive tax reduction and structural tax reduction are combined, with emphasis on reducing the tax burden of manufacturing and small and micro enterprises. Deepening the reform of value-added tax, reducing the current 16% tax rate of manufacturing industry and other industries to 13%, reducing the current 10% tax rate of transportation industry and construction industry to 9%, ensuring that the tax burden of major industries is significantly reduced; keeping the tax rate of 6% in the first class unchanged, but by adopting supporting measures such as increasing tax credits for production and living services, ensuring that the tax burden of all industries is reduced only and not increased, we will continue to move forward. The tax rate should be divided into three categories and the tax system should be simplified. We will carry out the policy of preferential tax reduction for small and micro Enterprises promulgated at the beginning of this year.

This tax reduction, focusing on “releasing water to fish farming”, enhancing development potential and considering financial sustainability, is a major measure to lighten the burden of enterprises and stimulate market vitality, an important reform to improve the tax system and optimize the pattern of income distribution, and a major choice for macro-policy to support stable growth, ensure employment and adjust the structure.

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