Strengthen coordination and cooperation to benefit enterprises and the public (policy interpretation) Support | Policy | Enterprises

The Politburo meeting of the Central Committee of the Communist Party of China proposed to implement precise and effective macroeconomic regulation, strengthen countercyclical regulation and policy reserves. What is the direction of macroeconomic policies? What measures will be introduced to promote sustained economic recovery and improvement? On August 4th, the National Development and Reform Commission, the Ministry of Finance, the People's Bank of China, and the State Administration of Taxation jointly held a press conference to introduce relevant policy information.

Introduce 10 tax and fee preferential policies for small and micro enterprises and individual businesses

Policy follow-up arrangements will be announced soon

Tax and fee incentives are an important part of proactive fiscal policies and are direct and effective policies that benefit enterprises. In the first half of the year, a total of 927.9 billion yuan was added nationwide for tax reduction, fee reduction, and deferred tax refunds, helping the national economy to continue to recover and overall recover.

Direct policies provide strong support for the development of the private economy. In the first half of the year, private economy taxpayers, including small and micro enterprises and individual businesses, added 704.9 billion yuan in tax reductions and deferred tax refunds.

The release of dividends provides strong support for the development of the real economy. In the first half of the year, the manufacturing industry and related wholesale and retail industries added 381.8 billion yuan in tax reduction and fee deferral, accounting for the highest proportion among various industries, reaching 41%.

The effect is evident, providing strong support for innovation driven development. In March this year, the government raised the proportion of R&D expenses deduction for eligible enterprises from 75% to 100%, and implemented it as a long-term institutional arrangement. In July of this year, a total of 308000 enterprises in China applied for R&D expense deduction in advance, and can enjoy a tax reduction of about 230 billion yuan.

"Small and micro enterprises and individual businesses still face many difficulties," said Wei Yan, Deputy Director of the Taxation Department of the Ministry of Finance. To this end, the Executive Meeting of the State Council has deployed and arranged 10 tax and fee preferential policies related to small and micro enterprises and individual businesses.

"We fully leverage the role of tax big data and quickly carry out 'one-on-one' precise push, achieving 'policy identification' and 'policy delivery to the doorstep'. According to Luo Tianshu, Chief Accountant of the State Administration of Taxation, the tax collection and management operation announcement is synchronously prepared and published, clarifying the requirements for tax collection and management items, tax refund processes, statistical accounting, etc. item by item.".

"The Ministry of Finance will also announce the follow-up arrangements for tax and fee preferential policies in the near future." Wei Yan said that the Ministry of Finance will focus on technological innovation, key industrial chains, establishing a modern industrial system, promoting income growth and consumption expansion, and actively plan tax and fee preferential policies, focusing on relieving difficulties for business entities.

Guide banks to lawfully and orderly adjust the interest rates of existing personal housing loans

Monetary policy still has sufficient space and abundant tools

"Overall, in recent years, China has adhered to the implementation of a prudent monetary policy, with sufficient policy space, rich policy tools, confidence, conditions, and ability to cope with various risks and challenges." Zou Lan, Director of the Monetary Policy Department of the People's Bank of China, said that in the next stage, the People's Bank of China will focus on expanding domestic demand, boosting confidence, preventing risks, and accurately and effectively implementing a prudent monetary policy.

Looking at the overall function of monetary policy, in June, the weighted average interest rate for corporate loans was 3.95%, a year-on-year decrease of 0.21 percentage points; The weighted average interest rate for personal housing loans is 4.11%, a year-on-year decrease of 0.51 percentage points, and the financing cost of the real economy is steadily decreasing.

In response to the public's concerns about reserve requirement cuts and interest rate cuts, Zou Lan stated that reserve requirement cuts, open market operations, medium-term lending convenience, and various structural monetary policy tools all have a total effect on liquidity injection and need to be coordinated and flexibly used. The People's Bank of China will comprehensively evaluate the deposit reserve ratio policy based on the progress of other tool usage and the medium - and long-term liquidity situation.

In addition, it is necessary to scientifically and reasonably grasp the level of interest rates. Based on the economic and financial situation and macroeconomic regulation needs, timely and moderate countercyclical adjustment should be carried out, while also taking into account the balance between growth and risk, internal and external factors, preventing fund arbitrage and idle, and enhancing the stability of bank operations.

"The People's Bank of China will guide banks to adjust the interest rates of existing personal housing loans in an orderly manner in accordance with the law," said Zou Lan. At the same time, we will continue to play an important role in the market-oriented adjustment mechanism of deposit interest rates, support banks in reasonably controlling debt costs, and enhance the ability of finance to continuously support the real economy.

Looking at the structural function of monetary policy, as of the end of June, the balance of structural monetary policy instruments was approximately 6.9 trillion yuan. Among them, the balance of re loans and rediscounts supporting inclusive finance for agriculture and small businesses was 2.6 trillion yuan, which was basically the same as the end of the previous year; The balance supporting green, low-carbon, technological innovation and other fields is approximately 1.2 trillion yuan, an increase of 516.6 billion yuan from the end of last year.

Next, structural monetary policy tools will focus on the following aspects——

Continuously support inclusive finance. Continue to implement inclusive small and micro loan support tools until the end of 2024, and maintain financial support for small and micro enterprises. At the end of June, the tool provided a total of 39.8 billion yuan in incentive funds and supported local legal person financial institutions to increase inclusive small and micro loans by 2225.4 billion yuan, an increase of 620 billion yuan from the end of the previous year.

Continue to support green and low-carbon development. We will implement carbon emission reduction support tools and support special refinancing for clean and efficient utilization of coal in parallel, incentivizing and guiding more financial institutions to support green and low-carbon development in a market-oriented manner. As of the end of June, carbon reduction support tools have supported financial institutions in issuing carbon reduction loans exceeding 750 billion yuan, driving annual carbon reduction emissions to exceed 150 million tons of carbon dioxide equivalent.

Multiple measures to support technological innovation. We will implement the financing action plan to support technology-based enterprises. At the end of June, the balance of technology innovation refinancing was 320 billion yuan, an increase of 120 billion yuan from the end of the previous year, and leveraged financial institutions to issue approximately 1.7 trillion yuan in technology enterprise loans.

Support the stable operation of the real estate market. Continue to implement the guaranteed housing loan support plan until the end of May 2024, while steadily promoting the implementation of the rental housing loan support plan in pilot cities.

Focus on six aspects: expanding domestic demand, strengthening physical entities, etc

Plan and research more targeted and powerful reserve policies

Since June, various departments have timely launched a batch of reserve policies to promote sustained economic recovery and improvement. "Measures such as guiding the downward trend of market interest rates, promoting the consumption of commodities such as automobiles, promoting the transformation of urban villages in mega cities, and the construction of public infrastructure for both emergency and emergency use, as well as orderly expanding the issuance scale of real estate investment trust funds in the infrastructure sector, have been introduced and implemented." Yuan Da, Deputy Secretary General of the National Development and Reform Commission and Director of the Comprehensive Department, said that other policies are also being promoted urgently.

Yuan Da stated that from the latest data on economic operation, the growth rate of physical quantity indicators has accelerated. In July, the national unified regulation power generation increased by 5.9% year-on-year, which is 1.5 percentage points faster than the previous month; Market expectations have also improved, with the Purchasing Managers Index for the manufacturing industry reaching 49.3% in July, marking the second consecutive month of recovery. With the continuous manifestation of the effects of various policies of "combination boxing", the economy in the second half of the year will maintain a stable and positive trend on the basis of continuous recovery in the first half of the year.

Next, the National Development and Reform Commission will focus on actively expanding domestic demand, strengthening and optimizing the real economy, promoting high-level technological self-reliance and self-improvement, continuously deepening reform and opening up, effectively ensuring and improving people's livelihoods, and preventing and resolving risks in key areas. A batch of more targeted and powerful reserve policies will be planned and studied, and will be timely and implemented in batches according to changes in the situation.

For example, in terms of strengthening and optimizing the real economy, we need to increase efforts to clear outstanding accounts of enterprises, especially small and medium-sized enterprises, and strengthen financial and tax support for small and micro enterprises and individual businesses. Strengthen policy reserves in areas such as accelerating the transformation of old and new driving forces, helping enterprises reduce burden and increase efficiency, and promoting the transformation of the real economy, structural adjustment, and growth of driving forces.

In terms of effectively ensuring and improving people's livelihoods, we should continue to implement phased policies such as promoting employment and income growth for residents, and strengthening public service guarantees for urban and rural residents. At the same time, we will strengthen policy reserves in expanding the scale of middle-income groups and promoting employment for key groups, in order to solve the urgent and difficult problems faced by the people.

"The National Development and Reform Commission will continue to strengthen economic monitoring, prediction, and early warning, closely track risks and hidden dangers in key areas, timely identify signs, tendencies, and potential problems in economic operation, improve the timeliness and foresight of macroeconomic policies, grasp the timing, intensity, and pace of policy implementation, and implement macroeconomic regulation accurately and effectively." Yuan Da said.