On the 25th, at a press conference held by the State Council Information Office, Vice Minister of Finance Xu Hongcai introduced that in 2021, the nation's general public budget revenue totaled 20.25 trillion yuan, an increase of 10.7% over the previous year and a rise of 6.4% compared to 2019. Both the central and local governments recorded some excess revenue, primarily driven by the economy’s recovery-driven growth and the relatively high increase in ex-factory prices of industrial products.

　　Xu Hongcai stated that in 2022, new, more robust, and comprehensive tax and fee reduction measures will be implemented to meet the needs of market entities, with efforts focused primarily on four key areas.

　　First, we will focus on high-quality development of the manufacturing sector, fostering technological innovation and continuous creation within enterprises. We will intensify the value-added tax credit refund policy, refine the policy for additional deductions of R&D expenses, encourage manufacturing enterprises to invest in equipment upgrades and technological transformations, and drive industrial transformation and upgrading.

　　Second, we will focus on small and micro enterprises and individual business households to help market entities accelerate their development and boost their vitality. We will extend the tax and fee reduction measures that were set to expire at the end of 2021 for small and micro enterprises and individual business households, further alleviating the operational pressures faced by these businesses.

　　Third, we will focus on strengthening local financial capacity to provide a solid foundation for tax and fee reductions. The central government will continue to increase its transfer payments to local governments, thereby channeling more financial resources down to the city and county levels and ensuring that local governments do not compromise on tax and fee reductions due to insufficient financial resources.

　　Fourth, we will firmly crack down on tax evasion, tax avoidance, and tax fraud, and resolutely put a stop to arbitrary fee collection.

　　Xu Hongcai stated that, overall, the tax and fee reductions in 2022 played an important role in boosting market entities’ confidence, stabilizing market expectations, expanding effective investment, stimulating end-consumer demand, and promoting steady and healthy economic development.

　　Reposted from: Xinhua Finance