Page 11 - REPORT ON THE EXECUTION OF THE CENTRAL AND LOCAL BUDGETS FOR 2022 AND ON THE DRAFT CENTRAL AND LOCAL BUDGETS FOR 2023

precision and sustainability. We implemented combined supporting policies
through tax and fee cuts, accelerated the pace of budget execution, strengthened
support for key fields, implemented fiscal policies at an early stage, and saw that

fiscal policy was better coordinated with monetary policy as well as other types of
policies. In doing so, we facilitated overall recovery and growth in the economy.

 We furthered the implementation of our proactive fiscal policy to ensure
overall economic stability.
Fully and effectively implementing combined supporting policies through tax and fee

cuts
We stepped up efforts to refund VAT credits on a large scale. All eligible micro

and small enterprises as well as the manufacturing sector and five other sectors
were included within the scope of this policy in April 2022. In the middle of the

year, the policy was expanded to include the wholesale and retail industry,
covering seven sectors in total, while priority was given to micro and small

enterprises. Outstanding VAT credits were refunded to medium and large
enterprises significantly ahead of schedule, thus ensuring the majority of refunds
was completed in the first half of the year.

We adopted tax and fee reduction policies, which included temporarily
waiving VAT for small-scale taxpayers, expanding the scope of reductions and


exemptions for “six taxes and two surcharges,” temporarily postponing the
payment of social insurance premiums, and postponing the payment of a portion

of administrative charges and guarantee funds. We carried out initiatives to end
unjustified charges levied on businesses and cracked down on tax evasion and tax

fraud in accordance with the law.
The sum of tax and fee reductions, VAT credit refunds, and postponed tax and
fee payments introduced in 2022 exceeded 4.2 trillion yuan. This included VAT

credit refunds to taxpayers’ accounts totaling 2.46 trillion yuan, more than 3.8
times the amount refunded in 2021; tax and fee reductions exceeding 1 trillion

yuan, consisting of more than 800 billion yuan in tax cuts and more than 200 billion
yuan in fee reductions; and postponed tax and fee payments of over 750 billion

 This refers to resource tax, urban construction and maintenance tax, property tax, urban land-use tax,
stamp duty (excluding stamp duty on securities transactions), tax on farmland used for nonagricultural
purposes, education surcharges, and local education surcharges.
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