2.18 trillion yuan fiscal deficit to reduce taxes and fees for small and medium-sized enterprises

During the two sessions this year, Premier Li Keqiang mentioned in his government work report that the fiscal deficit should be appropriately expanded - a planned fiscal deficit of 2.18 trillion yuan will be mainly used to reduce taxes and fees to further reduce the burden on enterprises. This is also highly consistent with cost reduction, one of the five major tasks of supply-side structural reform proposed by the Central Economic Work Conference last year.

Specifically speaking, "cost reduction" can be summarized as "seven reductions" - reducing institutional transaction costs, labor costs, corporate tax burdens, social insurance premiums, corporate financial costs, electricity prices, and logistics costs. Among them, in terms of corporate taxation, it is understood that the business tax to value-added tax reform will be fully launched this year, which means that the annual tax reduction will reach hundreds of billions of yuan, which is real financial support for enterprises.

Undoubtedly, this will greatly reduce the burden on small and medium-sized enterprises and stimulate the market to create innovative vitality. The same is true for the LED display industry. The market structure of my country's LED display industry is: large quantity, small size, dominated by small and medium-sized enterprises.

In addition, the current development status of the industry is: affected by unfavorable factors such as the increasing downward pressure on the domestic macro economy and the slow recovery from the economic crisis in Europe and the United States, the overall prosperity of the industry is not high, and the further release of downstream production capacity in the industry has made the competition in the display terminal market more intense, and the price of finished display products The rapid decline has led to a general decline in corporate profits, and the profits of individual companies have declined significantly. Furthermore, the increase in labor costs has exhausted the demographic dividend and has also made corporate operating profits tight. The increase in market operating costs and the increase in management and financing costs have also further compressed corporate profits.

In short, the huge pressure brought by the rapid increase in corporate operating costs has made it difficult for many small and medium-sized enterprises in the industry to survive. Small and medium-sized enterprises in the industry are eager to relax and reduce their burdens with the benefit of national policies.

The policy has been introduced, but the most critical thing is implementation. For example, companies currently generally complain that social security payment rates are too high. If the proportion of corporate social security payments can be reduced by increasing fiscal subsidies, it will greatly reduce the burden on companies. Another example is that small and medium-sized enterprises have difficulty in financing. If banks appropriately tilt their credit extensions to small and medium-sized enterprises, this is also a way of letting go of water to fish, and will give small and medium-sized enterprises more room to display their creativity. However, it remains to be seen whether these tax cuts and fee reductions can really bring tangible support to LED small and medium-sized enterprises.