More small businesses with low profits will enjoy halved corporate income tax, with the upper limit of taxable annual income raised from 300,000 to 500,000 yuan. For small and medium high-tech enterprises, the proportion of R&D expenses that are tax deductible is to be raised from 50 to 75 percent. We will do all we can to see the intensity and impact of structural tax cuts deliver further results. The great number of charges have placed an unbearable burden on many businesses; we are going to slash non-tax burdens.
First, we will completely overhaul government-managed funds, abolish municipal public utility surcharges, and authorize local governments to reduce and cancel some funds.
Second, we will abolish or suspend 35 administrative charges paid by enterprises to the central government, which represents more than a 50-percent reduction in the number; and then reduce as far as possible those that still apply. Local governments also need to make significant cuts to government administrative fees.
Third, we will reduce government-set operating fees for businesses. Unauthorized fees charged by intermediaries for government review and approval will be overhauled or abolished. We will work toward lower operating fees levied on businesses in the finance and railway freight sectors. We will strengthen oversight over the collection of market-set service fees.
Fourth, we will continue to lower as appropriate the share paid by enterprises for contributions to social security.
Fifth, we will deepen reforms and improve policies to reduce government imposed transaction costs for businesses and lower their energy and logistics costs.
All government departments and agencies concerned should have in mind the overall interests of the country instead of their narrow departmental interests, reduce the financial burden on enterprises, and help them develop new advantages over international competition.
Take targeted and powerful measures to strengthen areas of weakness
We need to focus on salient problems that are holding back economic and social development and making it difficult to improve people's standards of living, and we should integrate efforts to undertake major projects set out in the 13th Five-Year Plan with efforts to strengthen areas of weakness. We should act faster to raise the capacity of public services, infrastructure, innovation-driven
18
