Page 35 - REPORT ON THE EXECUTION OF THE CENTRAL AND LOCAL BUDGETS FOR 2022 AND ON THE DRAFT CENTRAL AND LOCAL BUDGETS FOR 2023

of keeping the overall tax incidence stable, we will further improve supporting
policies including tax and fee cuts, tax rebates, and the postponing of tax payments,
so as to ease the difficulties of enterprises, ensure fiscal sustainability, and optimize

the tax structure. We will lower the VAT rate for small-scale taxpayers to 1% on a
temporary basis and continue to exempt VAT on small-scale taxpayers with

monthly sales of less than 100,000 yuan. We will implement a policy on additional
VAT deductions of 5% and 10% for the producer and consumer service industries,
respectively. We will appropriately extend a portion of preferential tax policies

including those for individual income. We will launch new tax and fee reduction
polices targeted on areas such as scientific and technological innovation and key

industrial chains according to actual conditions. We will allow, in accordance with
the law, manufacturing MSMEs that have difficulty paying taxes on time to further

extend the tax deadline by an appropriate period, according to the extent of their
difficulties. We will take prompt action to address pronounced problems pointed

out by market entities, continue to rectify irregular charges on enterprises, and
crack down on arbitrary charges, fines, and quotas.
We will work unswervingly both to consolidate and develop the public sector and to

encourage, support, and guide the healthy development of the non-public sector. We will
work faster to foster a world-class business environment that is market-oriented,

law-based, and internationalized. We will optimize the structure of budgetary
expenditures of state capital operations, support further reform of state-owned

capital and state-owned enterprises, accelerate efforts to improve the layout of the
state-owned sector and adjust its structure, and enhance the core competitiveness

of SOEs. We will view all companies as equals in terms of financial subsidies,
preferential tax and fee policies, and government procurement to support the
development of private enterprises, MSMEs, and self-employed individuals. We

will leverage the role of government financing guarantee institutions and continue
the policy of providing rewards and subsidies to reduce financing guaranty fees

for small and micro businesses, so as to offer larger volume of financing to more of
these businesses.

4) Better guaranteeing inputs for rural revitalization and promoting
integrated urban-rural development and coordinated regional development

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