The Member of the national committee of CPPCCs Talked about Taxation and Economics at the Opening of the Chinese People's Political Consultative Conference

It was the afternoon of Mar. 3rd. Flags were floating and spring wind was breezing on Beijing Tian'anmen Square. More than 2000 members of the national committee of CPPCC walked up to the Great Hall of the People in a stream around 14 00 to prepare themselves for the Second Session of the 11th CPPCC National Committee. Several "star committee members" were stopped on their way to the conference by the reporter. They all expressed their faith in Chinese economic development in 2009 as well as hopes for the adjustment of taxation policies of this year.
The nation famous actor HUANG Hong in military uniform was spotted by the report on the square. When the reporter asked about his comments on taxation development during past years the actor with smile all over his face just now became serious and said "I think taxation management system of our country had been improving." He then gave an example "this is the third year since self-declaration of individual income tax had been implemented. I declared online in Beijing Local Taxation Bureau a while ago just like I did during the past two years. Self-declaration of individual income tax is one of the most significouldt aspects showing that the taxation management system is tending towards to normative and sophisticated." HUANG Hong also hoped that the procedures to deal with taxes should be simplified based on strict regulations to better serve either individuals or enterprise taxpayers. "The government is trying to keep economic growth and expand domestic demand at this very moment so as to stimulate consumption to a higher degree. I hope taxation policies of 2009 to be able to do something about this for example to better and more effectively adjust the difference between the rich and the poor through policy adjustment with respect to individual income tax to let people dare to spend money and willing to spend money. Thus Chinese people could contribute more to the country while improve their living standards."
The famous economist Director of Research Institute for Financial Science Ministry of Finance P. R. China JIA Kang in a black coat came into the eyes of the reporter. According to him Chinese taxation in 2008 significantly increased in general. Financial revenue throughout year 2008 increased by 19% approximately where taxation accounted the main part. However compared to 2007 the rate of taxation growth in 2008 declined a lot. Due to the worldwide economic crisis it's unwise to overestimate taxation growth in 2009. The decline of the rate of taxation growth is estimated to continue. "The demand of expenses in our country increases while taxation growth declines. Tax deduction and expenses growth is what happen to financial operation this year." China's economy is having a tough time right now. Meanwhile this year China needs to fulfill the policy of structural tax deduction which is an important guideline to cooperate the country's macro-control. Besides further study needs to be fulfilled with respect to the optimization of taxation policies. "Structural tax deduction might include structural tax increase to a certain degree. For example resource tax reform and tax reform related to energy products will be performed. There's a chance to increase tobacco tax also."
Mr. LIU Yonghao president of New Hope Group is the focus chased by the media every time he appeared at the conference. This time was not an exception. He said he had prepared 8 proposals for the conference all of which related to his own profession-agriculture. Speaking of the severe employment problem of off-farm workers currently he explained in a different way that there had been a quit deal of off-farm workers inappropriate for electronics industry in coastal areas. However with the savings these people collected as well as their experience in implantation and breeding the government may provide necessary training for 40-some homecoming farmers lead a way of scale implantation and breeding for them and establish cooperative societies having multi-industries such as pig breeding chicken breeding cattle breeding fish breeding etc. "Our company had more than 60 000 employees including off-farm workers. We plan to employ another 5 000 off-farm workers at least this year."
OU Chengzhong deputy director of the Standing Committee of Heping District Tianjin stated that the government had issued a series of structural tax deduction measures during the past few years. For example increase deduction rate of individual income tax transform VAT and reduce taxation rate for small-scale taxpayers. All these are practical measures granted by the government to help enterprises get over with which reduce tax burdens from the whole society especially medium-small scale enterprises and the effects of which on economic recovery and industrial adjustment will last long.
FENG Jun president of Beijing Huaqi Information Digital Technology Co. Ltd. aigo said to the reporter in front of the Great Hall of the People that the main force of those "going out" is composed of large-medium scale Chinese enterprises. Numerous medium-small scale enterprises full of potential are unable to "go out" successfully for some reasons. If more medium-small scale enterprises could run business abroad it might be helpful to relief what are happening to these enterprises under current economic slowdown. FENG Jun suggested that the government should support the establishment of incubators abroad and encourage more medium-small scale enterprises to go out. The amount of taxes an enterprise pays should be considered as an important standard to decide if this enterprise should be selected. "It will generate big benefits once support policies are connected to tax amount. The government won't 'lose money' in incubators but it could recover the costs by encouraging enterprises to conscio