Over 1.8 trillion yuan of tax refunds have made prominent effect of helping enterprises to relieve difficulties

As the "highlight" of this year's new package of tax-and-fee policies to support enterprises, The large-scale value-added tax (VAT) credit refund is a direct and efficient relief for the market entities and is also a key measure to stabilize growth market entities and keep employment.

Since the beginning of this year, to better cope with the new downward pressure on the domestic economy, the VAT credit refund has coverage from six major industries including micro and small enterprises, focusing on manufacturing, to seven industries closely related to people's livelihood, and the policy has been appropriately increased. The coverage continues to expand, and it is progressing in an orderly manner according to the schedule.

From April 1 to June 25, there has been 1,703.3 billion CNY of the VAT credit refund returned to the taxpayers’ account. Together with 123.3 billion CNY of the issued tax credit refund policy that continued to implement last quarter, the tax refunded to taxpayers’ account reached 1,826.6 billion CNY in total, which is 2.8 times the scale of tax refund last year. When it comes to the beneficial effect of the tax credit refund policy on enterprises, market entities interviewed often mentioned the following key words, like “timely help”, “strengthening confidence” and “increasing kinetic energy”. The executive meeting of the State Council held on May 23 decided to implement the full amount of outstanding and incremental tax credit refund in more industries, to increase it by more than 140 billion CNY, and to reach 2.64 trillion CNY of tax cuts and refunds for the whole year. It means that there will be more market entities enjoy the policy bonus.

“Since the beginning of this year, the tax credit refund has experienced two major points of time. The one is the large-scale VAT credit refund that has been implemented since April 1, the other is that the full amount of outstanding and incremental tax credit has been implemented since July 1 and increase by more than 140 billion CNY of tax refunds.” Feng Qiaobin, the deputy minister of Macroeconomic Research Ministry, Development Research Center of The State Council, said to People's Daily Online’ s reporter. The policy basically covered all walks of life that were affected by the epidemic and will increase cash flow for enterprises and easy difficulties. It is a key measure for China to ensure operations of market entities, and to hedge against the pressure of economic downturn.

Source from State taxation administration of the P.R.C.

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