2018年CRI Tax cut and administrative fees reduction highlights fiscal 2018

 

China's Ministry¹ of Finance has submitted its budget report and budget plan to the 13th National People's Congress for legislators to review and provide feedback. 

Finance officials briefed journalists at a press conference yesterday and took questions on the ministry's efforts regarding fiscal² and taxation³ system reform, as well as highlighting tax cuts and reductions in administrative⁴ fees as being on the agenda.

In the 2018 Government Work Report, Chinese Premiere Li Keqiang said that China has been cutting tax and administrative fees over the last five years to a total value of 3 trillion yuan.

Despite the cuts, fiscal income still grew by 7.4% in fiscal year 2017, a 2.9% increase on the previous year.

Finance Minister Xiao Jie said that strong economic momentum⁵ is the main reason behind the fast growth in revenue.

"The economy is the foundation of finance. Fiscal income relies on economic momentum. In general, fiscal income is in positive correlation⁶ with economic soundness. As we know, China's total economic output reached 80 trillion yuan last year, a 6.9% increase from the previous year. The economy is gaining momentum and enterprises are making profit. That is the basis for fiscal income growth."

Regarding plans for further tax cuts and reductions in administrative fees, Xiao Jie said that further reform of the value-added tax and personal income tax systems are primary concerns.

Citing the Government Work Report, Vice⁷ Finance Minister Shi Yaobin suggested that the threshold of personal income tax will be raised, while more attention is given to children's education and health care for major diseases.

"We will cancel unnecessary taxes and give more weight to important categories in the personal income tax reform. We will raise the threshold for personal tax income and increase the deduction⁸ for specific items. This will rationalize the tax burden and promote social equality."

When it comes to real estate tax, Vice Minister Shi Yaobin said that legislators will take note of common international practices while considering Chinese conditions when drafting related laws.

Meanwhile, Xiao Jie shed light on how the government would help guarantee the effective use of its money in light of China's growing fiscal expenditure⁹ in recent years.

"We will assess the effectiveness of the use of fiscal funds. In recent years, the Ministry of Finance has explored various frameworks for the assessment¹⁰ system. For the next steps, we will follow the requirements of the 19th CPC National Congress and further promote the effective use of fund to enhance the quality of public service."

China's fiscal expenditure exceeded 20 trillion yuan for the first time in fiscal year 2017. That number is expected to reach 21 trillion in the 2018 fiscal year according to this year's Government Work Report. 

1 ministry   

n.(政府的)部；牧师

参考例句：

• They sent a deputation to the ministry to complain.他们派了一个代表团到部里投诉。
• We probed the Air Ministry statements.我们调查了空军部的记录。

2 fiscal   

adj.财政的，会计的，国库的，国库岁入的

参考例句：

• The increase of taxation is an important fiscal policy.增税是一项重要的财政政策。
• The government has two basic strategies of fiscal policy available.政府有两个可行的财政政策基本战略。

3 taxation   

n.征税，税收，税金

参考例句：

• He made a number of simplifications in the taxation system.他在税制上作了一些简化。
• The increase of taxation is an important fiscal policy.增税是一项重要的财政政策。

4 administrative   

adj.行政的，管理的

参考例句：

• The administrative burden must be lifted from local government.必须解除地方政府的行政负担。
• He regarded all these administrative details as beneath his notice.他认为行政管理上的这些琐事都不值一顾。

5 momentum   

n.动力，冲力，势头；动量

参考例句：

• We exploit the energy and momentum conservation laws in this way.我们就是这样利用能量和动量守恒定律的。
• The law of momentum conservation could supplant Newton's third law.动量守恒定律可以取代牛顿第三定律。

6 correlation   

n.相互关系，相关，关连

参考例句：

• The second group of measurements had a high correlation with the first.第二组测量数据与第一组高度相关。
• A high correlation exists in America between education and economic position.教育和经济地位在美国有极密切的关系。

7 vice   

n.坏事；恶习；[pl.]台钳，老虎钳；adj.副的

参考例句：

• He guarded himself against vice.他避免染上坏习惯。
• They are sunk in the depth of vice.他们堕入了罪恶的深渊。

8 deduction   

n.减除，扣除，减除额；推论，推理，演绎

参考例句：

• No deduction in pay is made for absence due to illness.因病请假不扣工资。
• His deduction led him to the correct conclusion.他的推断使他得出正确的结论。

9 expenditure   

n.(时间、劳力、金钱等)支出；使用，消耗

参考例句：

• The entry of all expenditure is necessary.有必要把一切开支入账。
• The monthly expenditure of our family is four hundred dollars altogether.我们一家的开销每月共计四百元。

10 assessment   

n.评价；评估；对财产的估价，被估定的金额

参考例句：

• This is a very perceptive assessment of the situation.这是一个对该情况的极富洞察力的评价。
• What is your assessment of the situation?你对时局的看法如何？