Interview with Zhejiang Daily at the Two Sessions | Shen Guojun: Tax reduction and fee reduction, enterprises run fast with light equipment

Editor's note: On March 5th, the special issue of Zhejiang Daily's Two Sessions published an exclusive interview with Shen Guojun, a member of the National Committee of the Chinese People's Political Consultative Conference and founder and chairman of Intime Group. The following is the full text of the report:

Tax reduction and fee reduction, enterprises can run fast with light equipment

In recent visits and research, Shen Guojun, a member of the National Committee of the Chinese People's Political Consultative Conference and Executive Chairman of the Zhejiang Chamber of Commerce (Global), deeply felt that the best era for private entrepreneurs to do business has arrived. He is filled with joy and anticipation for the content of enterprise fee reduction, tax reduction, and improvement of the business environment that occupies a significant portion of this year's government work report.

Q: Tax reduction and fee reduction are important measures to deepen the supply side structural reform. As a member of the proposal committee, you also brought a related proposal this time. What benefits do you think tax cuts will bring to businesses? What targeted suggestions are included in the proposal?

Answer: The number of private enterprises in China exceeds 27 million, and the number of individual industrial and commercial households exceeds 65 million. Their role is irreplaceable. Zhejiang is a province with a large and strong private economy. Currently, some private enterprises are facing some difficulties in their development, among which the heavy burden of taxes and fees is a prominent issue. This year's government work report has sent out a significant tax reduction "red envelope", which substantially reduces the production and operation costs of enterprises, allowing more enterprises to run fast with light equipment and invest more funds in research and innovation. I believe that reducing taxes is a sign of confidence, as it can bring more tax revenue to businesses. The private economy will also usher in a period of leapfrog development, and 2019 will undoubtedly become a crucial year for China's economy to move towards a high-quality development model.

As the Executive President of the Zhejiang Chamber of Commerce (Global), I found during my visits to enterprises that the property tax on operating properties has put considerable pressure on many private enterprises that are deeply involved in the real economy.

In response to the property tax issue of commercial properties, I have put forward suggestions such as simplifying calculation procedures, improving management efficiency, optimizing tax classification management, and establishing a gradient tax system. I believe that by reducing the property tax on operating properties, they can maximize employment and create jobs, making greater contributions to the sustained and stable development of the national economy.

Q: To promote the development of private enterprises, the role of chambers of commerce cannot be ignored. You have always actively advocated the important role of chamber of commerce organizations. What measures can effectively activate the vitality of chamber of commerce organizations?

Answer: The Chamber of Commerce can widely unite the entrepreneurial community and sensitively reflect market dynamics. There are many outward oriented enterprises in Zhejiang, and their business affairs involving foreign affairs are constantly increasing. Under the continuous impact of global trade disputes and frictions, these enterprises often feel weak. They need the Chamber of Commerce to organize coordination and services, establish dialogue and negotiation channels between the disputing parties, unite everyone into a rope, cooperate with government departments, and safeguard and fight for their own interests in international competition.

Stimulating the vitality of chamber of commerce organizations is not only an important measure for entrepreneurs to work together and develop, but also an inevitable requirement for continuing to deepen reforms in the new era. At present, chambers of commerce often face the situation of being unable to coordinate and handle certain issues, requiring legal empowerment and relevant administrative resources support.

. Many commercial properties, such as hotels, office buildings, commercial centers, industrial plants, etc., carry a large number of employed people, but they still face significant tax burdens such as property tax and value-added tax. According to the investigation and visit, in the case of enterprise losses, the proportion of property tax for some operating properties to the total taxable amount is generally between 60% and 70%, and the pressure of enterprise tax burden is obvious, which to some extent exacerbates the operational difficulties.