2016年CRI Chinese Premier Urges Breakthrough in VAT Reform

 

Premier¹ Li said the full replacement² of business tax with VAT³ is an important tool to promote structural⁴ change, in particular supply-side structural reform.

"It would significantly ease the burden of businesses. In a way, it will contribute to improving the overall economic structure. The reform measures will lead to multiplied effects. It will serve to encourage more R&D expenditure⁵ by companies; boost demand through extended production chains; and make the environment more conducive⁶ for modern services and small and micro businesses."

Premier Li pointed⁸ out that although positive changes can be seen in the economy, the foundations for economic performance are not yet stable.

He urged local governments to focus on economic transformation⁹ and upgrading, mobilize the initiative of companies, and to expand effective investment in equipment upgrading and technology transformation.

Starting from May 1st, the replacement of business tax with VAT will be extended to construction, real estate, finance and consumer services.

The pilot sectors¹⁰ will involve 10 million more taxpayers¹¹, whose yearly business tax amounts to nearly 2 trillion yuan in total, making up 80 percent of the gross business tax revenue.

Vice⁷ Minister of Finance, Shi Yaobin, says the VAT pilot program is the largest since 2013.

"It's been predicted that the VAT reform will ease taxes by 500 billion yuan or 77 billion US dollars in 2016. Meanwhile, it also helps to avoid double-taxation¹², reducing the tax burdens on all industries. The reform is an important arrangement to bring the VAT's neutral function into play, so as to promote the fair development of all sectors."

In addition, the reform embraces many economic transactions carried out by enterprises and individuals.

Among them, the tax burden on second-hand¹³ house sales, which has been a big concern for home buyers.

Wang Kang is deputy director of the State Administration of Taxation.

"VAT reform will help to reduce the tax burden when people buy a second-hand home. In the past, the business tax rate was 5 percent. If people spent one million yuan, they would have to pay 50-thousand yuan in tax. Starting from May, housing buyers will pay 24-hundred yuan less than before."

A business tax-to-VAT pilot began four years ago, and has been gradually expanded.

By the end of 2015, it had reduced the tax burden of enterprises, most of which are small companies, by 640 billion yuan.

For CRI, this is Min Rui.

1 premier   

adj.首要的；n.总理，首相

参考例句：

• The Irish Premier is paying an official visit to Britain.爱尔兰总理正在对英国进行正式访问。
• He requested that the premier grant him an internview.他要求那位总理接见他一次。

2 replacement   

n.取代，替换，交换；替代品，代用品

参考例句：

• We are hard put to find a replacement for our assistant.我们很难找到一个人来代替我们的助手。
• They put all the students through the replacement examination.他们让所有的学生参加分班考试。

3 vat   

n.(=value added tax)增值税，大桶

参考例句：

• The office is asking for the vat papers.办事处要有关增值税的文件。
• His father emptied sacks of stale rye bread into the vat.他父亲把一袋袋发霉的黑面包倒进大桶里。

4 structural   

adj.构造的，组织的，建筑（用）的

参考例句：

• The storm caused no structural damage.风暴没有造成建筑结构方面的破坏。
• The North American continent is made up of three great structural entities.北美大陆是由三个构造单元组成的。

5 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。

6 conducive   

adj.有益的，有助的

参考例句：

• This is a more conducive atmosphere for studying.这样的氛围更有利于学习。
• Exercise is conducive to good health.体育锻炼有助于增强体质。

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 pointed   

adj.尖的，直截了当的

参考例句：

• He gave me a very sharp pointed pencil.他给我一支削得非常尖的铅笔。
• She wished to show Mrs.John Dashwood by this pointed invitation to her brother.她想通过对达茨伍德夫人提出直截了当的邀请向她的哥哥表示出来。

9 transformation   

n.变化；改造；转变

参考例句：

• Going to college brought about a dramatic transformation in her outlook.上大学使她的观念发生了巨大的变化。
• He was struggling to make the transformation from single man to responsible husband.他正在努力使自己由单身汉变为可靠的丈夫。

10 sectors   

n.部门( sector的名词复数 )；领域；防御地区；扇形

参考例句：

• Berlin was divided into four sectors after the war. 战后柏林分成了4 个区。 来自《简明英汉词典》
• Industry and agriculture are the two important sectors of the national economy. 工业和农业是国民经济的两个重要部门。 来自《现代汉英综合大词典》

11 taxpayers   

纳税人，纳税的机构( taxpayer的名词复数 )

参考例句：

• Finance for education comes from taxpayers. 教育经费来自纳税人。
• She was declaiming against the waste of the taxpayers' money. 她慷慨陈词猛烈抨击对纳税人金钱的浪费。

12 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。

13 second-hand   

adj.用过的，旧的，二手的

参考例句：

• I got this book by chance at a second-hand bookshop.我赶巧在一家旧书店里买到这本书。
• They will put all these second-hand goods up for sale.他们将把这些旧货全部公开出售。