China Financial News | Lai Chaohui: The "sense of acquisition" of construction enterprises is real

On the morning of March 5, Premier Li Keqiang, on behalf of the State Council, made a report on the work of the government at the second session of the 13th National People's Congress, pointing out that a larger scale of tax reduction should be implemented, and put forward specific arrangements and work requirements for deepening VAT reform in 2019. The report points out that the current 16% value-added tax rate for manufacturing and other industries will be reduced to 13%, the current 10% value-added tax rate for transportation and construction industries will be reduced to 9%, and the tax rate for the first 6% will remain unchanged. We will continue to advance the direction of three-tier tax rate and two-tier tax rate and tax system simplification.

Tax cost of construction industry has always been a focus topic in the industry. Lai Chaohui, vice chairman and President of Longyuan Group, said in an interview with China Financial and Economic Daily recently that the tax reduction and fee reduction policy has saved the cost of construction enterprises and made them feel a real sense of "gain".

In an interview with reporters, Lai Chaohui said that Premier Li Keqiang, in his report on the work of the government at the second session of the 13th National People's Congress, announced that he would deepen the reform of VAT, reduce the current tax rate of 16% to 13% in manufacturing industry, 10% in transportation industry, construction industry and other industries, and 9% in order to ensure that the tax burden of major industries would be significantly reduced. Low. After the increase of business operation, the tax cost of construction industry has been a focus of discussion in the industry. Reducing the value-added tax rate of construction industry is a big advantage for the construction industry. Tax reduction and fee reduction policy has saved the cost of construction enterprises, so that enterprises feel a real "sense of acquisition".

"From the enterprise's point of view, we very much welcome the policy of tax reduction and fee reduction, which is real for the improvement of corporate profits and cash flow. With these extra profits and cash flows, enterprises can invest more funds in innovation and excellent team building, which are positive effects on the long-term development of enterprises. The policy of tax reduction and fee reduction conveys a signal of making profits to the market and encouraging enterprises to develop rapidly. It also gives us greater confidence to continue to invest. In Lai Chaohui's view, tax reduction and fee reduction directly hit the pain and difficulty of the current market main body. It is a fair and efficient policy. Tax reduction and fee reduction policy brings an important expectation to enterprises, which is the encouragement of the state to the development of the whole market economy.

Lai Chaohui believes that the policy of tax reduction and fee reduction also brings benefits to relevant enterprises in the PPP market. "Many construction enterprises are also participating in the project investment and construction in the field of national infrastructure through PPP. We hope that the relevant departments of the state can promulgate preferential policies in the field of PPP as soon as possible, and encourage more private enterprises to participate in the field of infrastructure construction." He said.