Saturday , January 16 2021

Revenue from auction for national auction in first quarter fell by 9.5%, drop in taxes by 30% | Daily Economic News



On April 16, the Ministry of Finance held a press conference on fiscal revenues and expenditures in the first quarter of 2019. The data show that from January to March, the national public revenue from the public budget was 536.56 billion yuan, an increase of 6.2 percent over a one year period. Among them, the tax revenues of the national public revenue from the public budget amounted to 4670.6 billion yuan, an increase of 5.4% compared to the year.

The reporter of Daily Economic News noted that the effect of tax cuts on multiple tax categories, such as domestic value added tax, increased by 10.7 percent over a one year period, the growth rate decreased by 9, 4 percentage points over a one-year period, personal income tax declined by 29.7 percent over a one-year period and represents an increase of 50.4 percentage points over a one year period. In addition, in the land market, revenues from the transfer of rights to use state-owned land decreased by 9.5%.

The tax on personal income tax is reduced by 30 percent over a one year period

In the first quarter, national income tax increased by 5.4 per cent year-on-year, with an increase of 11.9 percentage points over a one-year period. The effects of value added tax policies continued to arise, such as value added tax, personal income tax, and taxation of small and micro enterprises. Among them, domestic value added tax increased by 10.7 percent over a one-year period, and the growth rate dropped by 9.4 percentage points over a one-year period, personal income tax declined by 29.7 percent for a period of one year, and the growth rate fell by 50.4 percentage points over a one year period. In the first quarter, tariffs fell by 6.8 percent over a one year period, and the growth rate dropped by 13.1 percent over a one year period. In order to promote the steady growth of foreign trade this year, China has accelerated the progress of export tax rebates. In the first quarter, the export amount was 506.2 billion yuan, and an annual increase of 32% (indicated by a fiscal reduction) and the growth rate by 20.3 percentage points over the same period of the previous year.

From 1 January, the new Personal Income Tax Law has been fully implemented. Six special policies for refusing education for children, continuing education, caring for major illnesses, interest in housing loans, renting apartments and support for elderly people have been officially flown. From January to February, about 44 million taxpayers enjoyed this policy.

Each deputy director of the Financial Research Institute of the Institute of Finance and Economics of the Chinese Academy of Social Sciences told a journalist of "Daily Economic News" that the effect of the fall in personal income tax is expected. Since October last year, the starting point has increased. Since January this year, a special additional reduction has been reduced, and the tax burden on taxpayers has been significantly reduced. In the current macroeconomic situation, tax cuts for individuals can help stimulate consumption and improve the lives of ordinary people. This is reducing taxes for the whole nation.

In addition, taxation in key industries has continued to grow rapidly, and contribution to revenue growth has increased. In the first quarter, tax revenues of the five key industries, including manufacturing, finance, real estate, wholesale, retail and construction, increased by 10.9 per cent year-on-year, faster than the overall rate of tax increase by 3.4 percentage points. According to industry: tax revenues from production increased by 11.8%, oil, steel, cement and building materials increased by 25.3%, 14.4%, ie 31.6%, general equipment, production tax of electrical machinery and equipment increased by 16.1% and 19.9%. Tax revenues in the retail sector increased by 3.5%, while taxes on real estate and construction industries increased by 12.7% and 7.9% %, respectively.

It will increase the local debt counter for sale

The data show that in the first quarter of this year, local government budget revenues amounted to 1,239.7 billion yuan, which is 7.1 percent more than a year. Among them, revenues from the transfer of state-owned land use rights decreased by 9.5%, but the costs of transferring rights to use state-owned land increased by 45.2%.

He Daxin told reporters of Daily Economic News that current mayors of China's first and second levels are under restriction of the policy of limiting buyers, and there are many uncertain expectations on the real estate market. The investment expectations of the residential enterprises and the expectations for buying buyers are affected. This led to a drop in land transfer revenues.

The reporter noted that a research report issued by the Chinese Academy of Sciences showed that from January to March 2019, the total land transfer fee in 300 cities in China was 828.1 billion yuan, which is 16% less year on year. The premium rate also declined. The average premium transaction rate in 300 cities in the first quarter was 13%, down 6 percentage points from the same period last year.

It is worth mentioning that, in the near future, the first group of counter local debt were popular among individual investors. On March 25, two local debts in Zhejiang and Ningbo were hot: in just 10 minutes, ABC's sale of $ 310 million was sold out, and the Industrial Bank sold hundreds of millions of yuan in 10 minutes.

Lee Dawei, deputy inspector of the Treasury Department of the Treasury, said issuing bonds of local governments over the counter to commercial banks is an important innovation in managing the issuance of bonds from local government. Not only does it contribute to the further expansion of local government bonds, but also to the enrichment of people and investment varieties of small and medium-sized institutions.

According to the counterpart mechanism, individuals and small and medium-sized institutions can subscribe to local government bonds through commercial banks or online banking, mobile banking, etc. With an initial amount of 100 yuan and a low trading threshold, investors can subscribe to local government bonds and, when you are obliged, you can enjoy a steady interest income, you can also sell or perform financing for pledge the contractor at any time when you need money. .

Lee Davey noted that in the next step, the Ministry of Finance will seriously summarize the issuance of the first series of local government bond bonds and will continue to organize the willingness of the provinces and cities to implement the issuance of local government bonds numbers in accordance with the principle of active, stable and step by step promotion and comprehensively reflect on the term bond. Policy adjustments, bond yields, project revenues, and release rings will be strengthened to ensure the unobstructed distribution of local government bonds. At the same time, further research and improvement of the mechanism for calculating the prices of local government bonds increases the volume of local government bond bonds and better meets the needs of individuals and small and medium-sized institutional investors.


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