[Chongqing Times] Xu Jiayin: Charity shall be nation-wide It is suggested to optimize the donation mechanism

Chongqing Times

Journalist: Li Chuan

In the morning of March 9, the third plenary meeting of the third conference of the eleventh CPPCC was held in the Great Hall of the People. Mr. Xu Jiayin, a member of CPPCC, vice chairman of China Enterprise Confederation (CEC), and chairman of the board of directors of Evergrande Real Estate Group, as a representative of Chinese enterprises and the only member of CPPCC with the native place in Guangdong, made a speech named Arouse the Participation Enthusiasm of Enterprises, and Promote the Development of Charities in the meeting.

Xu Jiayin said that among the tens of millions of Chinese enterprises, there were only hundreds of thousands having the donation records. That was to say, most of the enterprises do not have any record of charity cause. But some of the enterprises enthusiastic about charity cause suffer from the pressure from relevant administration to donate, by which the enthusiasm for donation is directed influenced.

Shoulder social responsibilities and build a corporate citizen

Recently, natural disasters happed in Haiti and Chile. Donation of enterprises is the important channel with the effective salvation of the government. In the speech in the two Conferences this time, Xu Jiayin appealed for the joint attention of the society to the charity cause. At the same time, Evergrande played an important exemplary role for the charity cause.

The journalist knows that as pioneer in shouldering social responsibilities and implementing the idea of corporate citizen, in 2008 and 2009 when the development of the company met with huge challenge in the financial crisis, Evergrande still input large amount of money into the charity cause and public welfare.

Especially in 2009, Evergrande donated 30 million yuan to carry out the event of Evergrande Ten Thousand People s Walk for Charity together with China Foundation for Poverty Alleviation for emergency rescue provided to ten kinds of people in special difficulties, through which a new way of the poverty alleviation charity cause of China is found, thus causing strong social response.

This activity became the most important large-scale philanthropic activity of which the donation amount is the largest of China Foundation for Poverty Alleviation for public welfare in 2009. China Foundation for Poverty Alleviation has conferred the honorary title of Chinese Philanthropist for Poverty Alleviation on Xu Jiayin, chairman of the board of directors of Evergrande Real Estate Group.

By December 22, 2009, according to the statistics of the foundation for poverty alleviation, through the project, 13,278 people have been provided with financial aid, far beyond the preset target.

Three major measures for optimizing the donation-encouraging mechanism

Charity cause is voluntary. But if the donors are rewarded in the spiritual aspect, their enthusiasm of enterprises for participating in the charity cause will certainly be enhanced. Xu Jiayin holds the opinion that it is important to set up the philanthropic donation mechanism and integrate it in the taxation system.

There are three specific measures: 1. To implement the Generalized System of Preference (GSP): When an enterprise donates to any legal philanthropic organizations, it is entitled to tax preference. In this way, the donation amount can be increased on the whole. 2. To set up convenient, fast, and handy tax exemption procedure.

3. To levy the inheritance tax and gift tax, and increase the percentage of tax on luxury goods, thus guiding rich enterprises to input part of the funds for the public welfare of the society.