Measures such as lowering electricity prices and reducing logistics costs will soon be implemented

Date of issue:2019-05-19 18:13
Measures to reduce electricity prices and logistics costs are imminent
A package of big measures is about to hit the ground running

Since April 1 and May 1 respectively, the VAT and social insurance reduction rates have been clearly implemented, and relevant departments are making intensive preparations. In recent days, a number of policy documents have been released, and some detailed rules will be released one after another. Meanwhile, a package of other cost-cutting measures, including lower logistics costs and lower electricity prices, will soon be released. This year, more efforts will be made to reduce costs, and manufacturing and small and micro businesses will be the focus of this year's burden reduction.

According to this year's government work report, China will roll out a series of measures to reduce the cost of taxes, logistics and electricity. In general, tax cuts and fee reductions will continue to be the main force in reducing costs this year, reducing the burden on businesses by nearly 2 trillion yuan.
Recently, the executive meeting of the state council made further arrangements on deepening the reform of value-added tax and lowering the rate of social security. In addition, the ministry of finance, the state administration of taxation and other relevant departments have issued a number of documents, the relevant policy details have been implemented. The reporter also learned from the state administration of taxation that the tax authorities are preparing for the war, holding working meetings and stepping up arrangements to ensure the implementation of tax cuts and fee reductions.

Preparations are also under way at the local level. For example, on March 26, zhejiang province issued a notice on comprehensively implementing the reform of value-added tax. The relevant person in charge of the departments in zhejiang province, said this round of a package of tax cuts only directly reduce the VAT rates in a, can reduce the financial burden on the provincial enterprise 50 billion yuan of above, plus a small micro enterprise pratt &whitney has introduced in early tax policy and the upcoming burden of social security policy, is expected to reduce the burden of taxes and fees for 150 billion yuan of above. The zhejiang tax bureau said the tax cuts will cover 960,000 general taxpayers in the province, with 43.41 percent of the total coming from the manufacturing sector.

In addition to reducing the tax burden, a number of other enterprises targeted pain points, difficult measures to reduce costs are also stepping up implementation. A few days ago, minister of transport li xiaopeng chaired a meeting of the ministry of transport to study the implementation plan of key tasks in the ministry's 2019 government work report and review the work plan for deepening reform of the toll road system and eliminating toll booths at provincial boundaries. The meeting indicated that we should deepen the reform of the toll road system, reduce the toll for crossing roads and Bridges, and work hard to basically cancel the toll stations at provincial boundaries of national expressways two years in advance. We need to improve the market environment for transportation, vigorously streamline administration, delegate power, and comprehensively reform administrative law enforcement.

According to the reporter of economic information daily, a series of measures to reduce costs in the field of transportation this year will be announced soon. Li xiaopeng previously revealed at a press conference held by the office that quantifiable measures have reduced logistics costs by about 98.1 billion yuan in 2018.

According to lu dongfu, secretary of the communist party group and general manager of the China railway corporation (CRC), this year, we will further reduce the fees charged by railway enterprises. From April 1, we will cancel six items of miscellaneous fees, such as service fees for turning over and unloading trucks, and reduce four items of miscellaneous fees, such as the fees for delaying the occupancy of trucks. From July 1, we will reduce the service charges for the operation and maintenance of private line agents and for the maintenance of self-owned vehicles. In addition, for the tax reduction policy of reducing the value-added tax rate of the national transportation industry from 10% to 9%, the railway general administration will follow up the floating railway freight rate and pass the tax reduction amount to the downstream enterprises. The measures are expected to reduce annual fees by about 7 billion yuan. At the same time, the railway association will support and cooperate with local governments to reduce other railway related charges, including reducing service charges for private line enterprises and reasonably lowering local railway freight rates.

In addition, according to the latest revision of the "port fees and charges" issued by the ministry of transport and the national development and reform commission, starting from April 1, the charges for cargo port fees, port facilities security fees, pilotage (berth shifting) fees and tugboat fees for domestic routes will be reduced by 15 percent, 20 percent, 10 percent and 5 percent, respectively.

In this year's government work report, the government also proposed to lower the cost of electricity for manufacturing industries, and cut the average electricity price for businesses by another 10 percent. This is a further price cut following last year's 10 per cent cut in the price of ordinary industrial and commercial electricity.

The state grid corporation limited said it reduced the burden on average industrial and commercial users by 79.2 billion yuan annually in 2018. With the addition of large industrial users, the electricity cost of various customers in the business area was reduced by 91.5 billion yuan in 2018.

"In 2018, a total of 64.4 billion yuan will be added to the southern power grid region to reduce user costs, including 22.329 billion yuan for industrial and commercial users directly supplied by grid enterprises. If electricity prices are lowered by another 10% this year, it is expected to be around 14 billion yuan." Cao zhian, general manager of China southern power grid co., LTD., told the economic information daily in an interview.

Liu xingguo, a researcher at the research department of the China enterprise federation, told reporters that further tax cuts and fee cuts are urgently needed to reduce the overall cost of business operations more significantly, expand the profitability of enterprises and strengthen the confidence of entrepreneurs in investment.

He said the focus of cost cuts this year would be on manufacturing, with tax cuts, especially tax cuts, the main focus. At the same time, he said, enterprises must also strengthen cost management, take comprehensive measures to reduce production costs, strengthen the sense of credit investigation, integrity and law-abiding operation, strive to improve their credit rating, increase the availability of financing, reduce the cost of financing.

Gao yuwei, a senior researcher with the bank of China, told the economic information daily that the focus of this year's effort to cut costs will include labor costs, tax costs and financing costs, which are also significant cost issues for companies. In terms of reducing the cost of financing, he suggested that, when appropriate, cut the required reserve ratio, expand credit, reduce the cost of loans. We will support large Banks in replenishment of capital through multiple channels, and step up targeted RRR cuts for small and medium-sized Banks. We will increase medium - and long-term loans and credit loans for manufacturing. We will improve the internal assessment mechanism of financial institutions and encourage greater financial inclusion.

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