What is double reduction (policy background and purpose)

"Double reduction" refers to a tax reduction and fee reduction policy implemented by the China Municipal Government. Tax reduction refers to reducing the income tax of enterprises and individuals, while fee reduction refers to reducing the non-tax burden of enterprises, including social security fees and housing provident fund. This policy aims to reduce the burden on enterprises and individuals, stimulate economic growth and improve people's spending power.

Policy background

Implementing the policy of "double reduction" is an important measure for China government to cope with the downward pressure on the economy and boost market confidence. In recent years, global economic growth has slowed down, and domestic economic restructuring, transformation and upgrading are facing greater challenges. In response to these problems, the China Municipal Government has actively promoted structural reform on the supply side, increased tax reduction and fee reduction, and promoted economic development and stable employment.

Policy purpose

The purpose of the double reduction policy is to stimulate market vitality, enhance the innovation power and competitiveness of enterprises and promote economic growth by reducing the tax burden of enterprises and individuals. Specific objectives include: First, reducing the burden on enterprises, improving their profitability and promoting their investment and innovation; The second is to increase residents' income, improve people's consumption power and stimulate domestic demand; The third is to improve the business environment, promote market competition and optimize resource allocation.

operation sequence/order

1. Tax reduction measures: The government reduces the tax burden by reducing the corporate income tax and personal income tax rates. Enterprises can enjoy more profits for expanding production and innovation investment. Individuals can increase disposable income and improve consumption level.

2. Cost reduction measures: The government reduces the non-tax burden of enterprises by reducing the social security rate and the proportion of housing provident fund deposit. This can improve the capital turnover rate, increase cash flow and promote the development of enterprises.

3. Reform measures: the government simplifies the administrative examination and approval process, optimizes the business environment, provides better services and guarantees, and reduces the operating costs of enterprises. At the same time, strengthen the protection of intellectual property rights, encourage technological innovation and improve the competitiveness of enterprises.

Influence of double reduction policy

The implementation of the double reduction policy has had a positive impact on China's economy. On the one hand, reducing taxes and fees has increased the profitability of enterprises, stimulated their investment enthusiasm and promoted economic growth. On the other hand, it has increased residents' income, improved people's consumption power, stimulated domestic demand and promoted the steady development of the economy. At the same time, optimizing the business environment and strengthening intellectual property protection also provide a good environment and guarantee for the innovation and development of enterprises.