Wang Daoshu:

I could add on to that. Since the 18th CPC National Congress, the CPC Central Committee and the State Council have made efforts to reduce taxes and fees, considering this goal as an important part of deepening supply-side structural reform, planning and implementing an array of tax and fee reduction policies. These policies are implemented on a large scale and cover a wide range of entities previously unseen. They also have played a crucial role in easing the burdens of and energizing market entities.

Fully implementing General Secretary Xi Jinping's instructions and acting in line with the CPC Central Committee and the State Council's decisions and plans, the State Taxation Administration has taken and fulfilled the political responsibility for tax and fee reduction and adopted an innovative approach, i.e., adhering to one guidance, strengthening nationwide coordination, acting in accordance with one timetable, implementing the policy thoroughly, providing one package of services, answering questions from one authority, adopting one measurement, practicing integrated supervision, and uniting as one. We ensure that taxpayers can get tax and fee policies by scanning a QR code, while government services such as consultancies can be accessed online or through cellphone apps to ensure that the benefits of tax and fee reduction policies go straight to market entities fast and efficiently.

Since the start of this year, the CPC Central Committee and the State Council have rolled out new combined supporting policies through tax and fee cuts. As Mr. Xu has mentioned, the tax and fee reductions this year are expected to reach 2.5 trillion yuan, of which the VAT credit refunds will account for 1.5 trillion yuan. Focusing on the critically important policy of tax refunds and cuts on a large scale this year and implementing the requirements of providing high-quality, accessible, and convenient services, adopting a scientific and preventative approach to review enterprises' qualification for VAT credit refunds, harshly combating tax fraud, strictly conducting self-examination, continuously promoting policies, and providing fast, targeted, stable, and quality services, the taxation administrations nationwide have upgraded the information system 12 times and improved the application of contactless online taxation administration websites and apps to ensure faster and more efficient refunds amid the COVID-19. We have launched actions where top officials of the taxation administrations at provincial, municipal, and prefectural levels have taken charge of services directly to give immediate response to taxpayers' appeals. This will help take quick actions to tackle problems once they are spotted, removing the last crucial hurdle for implementing the policies so that taxpayers can enjoy efficient and convenient services. Targeted and immediate actions have been taken to crack down hard on tax fraud. From April 1 to May 16, 2,880 enterprises suspected of defrauding VAT credit refunds have been filed and inspected, and 118 related cases have been publicly exposed nationwide, sending a strong signal that tax fraud will be harshly combated and violators will be strictly punished, while also ensuring that no lawbreaker would take advantage of the tax and fee reduction policies. At the same time, a total of 25 cases of dereliction of duty by tax officials have been exposed, especially the very few cases of tax collusion that have been filed for review, showing that we punish corruption with an attitude of zero tolerance and keep firmly in mind the old adage that it takes a good blacksmith to make good steel.

Concerning the implementation of the new combined supporting policies through tax and fee cuts, as Mr. Xu has mentioned, this year, we have cut taxes and fees and increased cash flow for enterprises by 1.6 trillion yuan, consisting of three parts. First, from April 1 to May 16, a total of 979.6 billion yuan of VAT credit refunds were returned to corporate accounts, in addition to 123.3 billion yuan in refunds from last quarter when the previous VAT credit refund policies were carried out. This year, a total of 1.1 trillion yuan in refunds have been returned to taxpayers' accounts. Second, China introduced more tax and fee reductions in the first quarter, which amounted to 198 billion yuan. Third, 377.8 billion yuan of tax payments were postponed for micro, small, and medium enterprises (MSMEs) in manufacturing. These policies' benefits have played an important role in solving difficulties and rekindled confidence for enterprises, especially MSMEs and self-employed individuals.

Thank you!