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Our reporter learned from authoritative sources on the 11th that the relevant ministries and commissions have formulated plans to promote the reduction of tax burdens in the business services industry. The industry believes that this will bring significant benefits to business service companies. The planning proposal will gradually expand the VAT exemption policy from the production of fresh agricultural products to the circulation, so that the circulation enterprises of agricultural products can also enjoy the benefits of agricultural products; reduce the tax burden of commerce and service industries such as catering, and restore the business tax from 5% to 4%. The conditions will gradually change to VAT. "The central government has clearly stated that the next phase will expand the scope of value-added tax." Jia Kang, member of the National Committee of the Chinese People's Political Consultative Conference and director of the Institute of Finance, believes that once this major matter is implemented, it means that China has taken another big step in structural tax reduction. That is to reduce the tax burden of the main business of the tertiary industry, encourage industrial upgrading, and encourage the tertiary industry. The service industry pushes the structural adjustment to a leaf. As far as the development of the modern service industry is concerned during the “Twelfth Five-Year Plan†period, business services are only one part of it. The reporter was informed that the “12th Five-Year Plan†service industry development plan and key areas reform plan have been prepared, and the molding plan has been submitted to the State Council for approval. The plan will give more support to the modern service industry in terms of finance, finance, and taxation. Up to now, while the proportion of industrial added value to GDP in China has exceeded the highest value in the industrialized period of developed countries, China's service industry accounts for not only lower proportion of GDP than middle-income and developed-income countries, but even lower than low-income countries. According to the latest data released by the Bureau of Statistics, in 2010, the added value of the service industry accounted for 43% of GDP, down 0.4 percentage points from 2009. In this context, the Central Committee of the Communist Party of China’s "Proposal on Formulating the Twelfth Five-Year Plan for National Economic and Social Development" (hereinafter referred to as the "Proposal") mentions that it is necessary to accelerate the development of the service industry and promote the development of the service industry. To the height of "strategic focus as an optimization and upgrading of industrial structure." The "Proposal" also pointed out that it is necessary to vigorously develop the productive service industry and the life service industry and actively develop tourism. “The service industry will usher in a rare opportunity.†Xia Jiechang, director of the Service Economics Research Office of the Institute of Finance and Trade of the Chinese Academy of Social Sciences, said that the macro policy environment is conducive to the development of the service industry and the depth and breadth of the international transfer of services will accelerate. At the same time, the apparently accelerated urbanization process has further expanded the development of the service industry. "At the end of the 'Twelfth Five-Year' period, China will usher in the era of service economy." Xia Jie said. It is determined to reform the business tax. At present, the development of China's service trade industry is not satisfactory. From 2005 to 2010, the growth of trade in services in the gross national product was decreasing year by year. "The government work report mentioned that the service industry indicators in the 'Eleventh Five-Year Plan' did not meet the standards, which is closely related to the failure of the business tax reform." Xu Shanda, member of the National Committee of the Chinese People's Political Consultative Conference and former deputy director of the State Administration of Taxation, said that the "Twelfth Five-Year Plan" During this period, China must make a determination to reform the business tax. At the two national conferences being held, the development of the service industry has become one of the hot topics for delegates and committee members. Wei Jianguo, member of the National Committee of the Chinese People's Political Consultative Conference and secretary-general of the China International Economic Exchange Center, proposed to vigorously promote the development of trade in services from the perspective of national strategy. This is not only conducive to the development of foreign trade, but also to the development of the service industry and the tertiary industry. Regarding the issue of business tax reform, Li Yining, a member of the National Committee of the Chinese People's Political Consultative Conference and a well-known economist, also proposed to vigorously support the development of the service industry by reducing business tax. "Developing modern service industry is an inevitable requirement of China's current social development." Zhang Shaoqin, vice chairman of the Central Committee of the Democratic National Construction Association, suggested strengthening the legal system in the field of modern service industry and creating a fiscal and taxation policy environment conducive to the development of modern service industry. In this regard, the "Proposal" has already mentioned that during the "Twelfth Five-Year Plan" period, it is necessary to establish fair, standardized and transparent market access standards, explore market management measures suitable for the development of new service formats, adjust taxes and fees, land, water and electricity. The factor price policy creates a policy and institutional environment conducive to the development of the service industry.
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