Four Departments Specified 23 Specific Tasks for Performing the Key Tasks of Cost Reduction This Year

Source:Organizing_Committee    |      Date:2020-07-31    |      Hits:

  Four departments including the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly issued the Circular on Performing the Key Tasks of Cost Reduction in 2020 (the “Circular") on July 28, deploying 23 specific tasks from tax and fee reduction, financial support, to systemic cost reduction, to further coordinate the advancement of COVID-19 prevention and control and economic and social development, and to help companies properly respond to the impact of COVID-19 and overcome difficulties.

  (Picture source: National Development and Reform Commission’s official website)

  The Circular requires relevant parties to implement tax reduction and exemption policies, fee fund reduction and exemption policies, and established tax and fee reduction policies to lower average corporate broadband and private line tariffs and resolutely rectify illegal charges for enterprises. The implementation period of policies such as value-added tax reduction and exemption for small-scale taxpayers and exemption of value-added tax on services such as public transportation, catering and accommodation, tourism and entertainment, cultural and sports services has been extended to the end of this year. Small and micro enterprises and individual industrial and commercial households are permitted to postpone their income tax payment to next year. Except for "high energy consumption, high pollution and high-resource-consuming enterprises", the taxes levied on all export products that have not been refunded at the nominal tax rate will be fully refunded.

  The Circular proposes to strengthen financial support for the real economy by unblocking the transmission channels between finance and real economy, giving full play to the role of government financing guarantees, focusing on the role of directional tools, improving financial services for the real economy, and effectively enhancing the efficiency of financial services. Linkage between the policies of the RMB 300 billion Special Re-Loan for COVID-19 Prevention and Control, the CNY 500 billion re-loans and Re-Discount Fund, and the new RMB 1 trillion Inclusive Re-Loans and Re-Discount Line should be properly arranged.

  The Circular also requires relevant organs to relax market access and operating restrictions, optimize government service business processes, strengthen digital technology applications, cut policy compliance costs, and continuously reduce institutional transaction costs. This includes the expansion of the catalog of industries that encourage foreign investment, so that foreign investors can enjoy tax and other preferential treatment in more fields. Other measures such as relaxing restrictions on the registration of operating premises for small and micro enterprises and individual industrial and commercial households to facilitate registration and operation and timely provision of support through policies, have also been raised.

  The optimization of the business environment is a major deployment made by the Party Central Committee and the State Council. It is also the institutional basis and important supporting condition for the Capital City to build a high-tech economic structure and promote high-quality development. The 2020 China International Fair for Trade in Services (the 2020 CIFTIS) will be held in Beijing in September with the theme of "Global Services, Shared Prosperity”.

  The 2020 CIFTIS will focus on the front trend, innovative development, international cooperation and other themes of service trade to organize global service trade summit forums, industry forums, industry conferences, professional forums, and trade fairs, and representatives of international organizations and government agencies, and well-known guests from industry, academia and research circles will be invited to participate in seminars and exchanges to share industry experience and contribute wisdom for development.

  A new exhibition mode of “1+8+N” has been established for the 2020 CIFTIS, including one selected exhibition, 8 feature exhibitions (Culture Services, Financial Services, Winter Sports, Tourism Services, Service Robots, Educational Services, Sports Services and 5G Communication Services), and N functional service areas around the exhibition venues.

  A release hall has been set up as a platform for the exhibitors to release the latest technologies, products, achievements, policies, industry standards, development indexes, development reports and service demonstration cases.

  During the 2020 CIFTIS, thousands of institutions and companies from more than 100 countries and regions, especially the World Top 500 companies and industry leaders in the top 30 countries and regions in service trade, will hold exhibitions or release new products through the on-line exhibition hall to showcase their latest products, technologies, services and business solutions.