What Are The Effects Of Tax Cuts And Tax Cuts This Year? Ministry Of Finance'S Latest Data, Three Key Points To Understand

The Ministry of Finance recently released the national revenue and expenditure situation in the first 11 months of this year. Data show that 1-11 months cumulative, the national general public budget revenue of 17 trillion and 896 billion 700 million yuan, an increase of 3.8% over the same period last year, an increase of 2.7 percentage points lower than the same period last year. The national general public budget expenditure was 20 trillion and 646 billion 300 million yuan, an increase of 7.7% over the same period, an increase of 0.9 percentage points over the same period last year.

From the data, the growth rate of fiscal expenditure is 3.9 percentage points faster than that of revenue growth. Under the background of reducing taxes and reducing fees, China's fiscal revenue and expenditure show three characteristics.

Characteristics 1

The effect of tax reduction and tax reduction continued to appear, and the related taxes decreased year by year.

Data show that in 1-11 months, the national tax revenue (149699 billion yuan) grew by 0.5% over the same period last year, and the cumulative increase was 0.1 percentage points higher than that in 1-10 months. Tax revenue growth picked up slightly, mainly in the fourth quarter of last year to consider the introduction of a larger tax reduction and tax reduction, the tax department handled part of the tax deferred payment in accordance with the law, resulting in a relatively low income base last year. After deducting this factor, the tax revenue in October and November decreased by an average of about 3%, continuing the trend of negative growth since May.

Subject to tax reduction and other factors, the main categories of taxes declined or increased slightly. China's value-added tax increased by 2.3%, down 7.1 percentage points from the same period last year, and corporate income tax increased by 5.7%, down 3.6 percentage points compared to the same period last year. Personal income tax, import value-added tax and consumption tax have declined in varying degrees.

Characteristics two

We should revitalize state owned resource assets and increase non tax revenue through multiple channels. In 1-11 months, the national non tax revenue was 29268 billion yuan, an increase of 593 billion 600 million yuan compared with the same period last year, an increase of 25.4%. This is mainly to increase non tax revenue by way of specific state-owned financial institutions and state-owned enterprises paying profits, and multi-channel revitalizing state owned resource assets. Like state-owned capital operating income 744 billion 600 million yuan, an increase of 460 billion yuan over the same period, an increase of 1.6 times, pulling up the national non tax revenue growth by 20 percentage points, of which the specific state-owned financial institutions and central enterprises paid profits 610 billion yuan, an increase of 360 billion yuan compared with the same period last year.

At the same time, charges related to enterprises declined year by year. On the basis of a sharp decrease of 17.6% in the same period last year, the income from administrative charges increased by only 0.5% over the 1-11 months of this year.

Characteristics three

Fiscal expenditure has maintained a relatively fast growth, and the implementation of key expenditure budgets is in good condition. In the first 11 months of this year, education, science and technology expenditure increased by 8.7% and 8.9% respectively. Social security and employment, health and health expenditure increased by 8.5% and 9.1% respectively. The growth of energy saving and environmental protection expenditure was 14.3%, and urban and rural community expenditure increased by 8.2%.

Since January 1, 2019, the new personal income tax law has been put into effect in China. After the implementation of six additional deductions for children's education, continuing education and serious illness, the effect of tax reduction continues to appear. In 1-11, personal income tax revenue was 950 billion 200 million yuan, down 26.8% from the same period last year, an increase of 43.8 percentage points lower than that of last year. In November, the personal income tax was 72 billion 600 million yuan, an increase of 3.6% over the same period last year. This is the first positive growth in a single month this year, mainly because of the impact of last year's policy of raising the standard of basic cost reduction and adjusting the structure of tax rates.