Small and medium-sized building materials companies are expected to tax cut tax support policies or introduced during the year

A recent news has inspired a large number of SMEs in the building materials industry. According to sources from the State Administration of Taxation, relevant state departments will study tax support policies for SMEs and sharply reduce taxes for small businesses.

When I talked with SMEs in the building materials industry, the first issue they complained about was excessive taxation. It is understood that domestic building materials, households need to bear the tax revenue, including value-added tax, business tax, corporate income tax. In many places, relevant departments have adopted a 13% “tax package” on business revenue for small building materials companies. Excessive burden has squeezed the profitability of small and medium-sized enterprises, which not only restricted the development of small and medium-sized enterprises, but also restricted the employees’ Income growth, welfare growth.

In this regard, the famous economist Wei Jie also said: "Why the reason why many people are willing to retain self-employed people and do not want to become small and medium-sized enterprises is this, once they become small and medium-sized businesses instead of self-employed, their taxation pressure will be even greater. "As far as I know, now it is very difficult for SMEs to take on this aspect again, and it is on the margin of the most serious burden."

For SMEs to solve their difficulties, Wei Jie believes that the key is that the government should make profits. The government’s fiscal revenue is too high. This is not correct. The government should reduce taxes and refund taxes. What is exciting about SMEs in building materials is that the country has begun to pay attention to the problem of excessive taxation of SMEs. According to media reports, the relevant departments within the State Administration of Taxation are indeed studying relevant supporting policies for SMEs.

"As regards the support policies for SMEs, the total tax is only to cooperate with the Ministry of Industry and Information Technology and the China Banking Regulatory Commission to participate in relevant research work, mainly driven by the Ministry of Industry and Information Technology, which is in charge of SMEs. From the perspective of the work process of the State Administration of Taxation, there is a high possibility of severe tax reductions for SMEs. According to the relevant staff of the State Administration of Taxation. It is reported that this policy is expected to be introduced within the year.