On April 6,2017, the State Taxation Bureau in Hubei Province held a forum on emerging topics in tax reform. Wu Jiangang, Deputy Chairman of YRIC, Chairman of ORSUN Group said that it is essential to establish tolerance mechanisms to support private enterprises be stronger.
Orsun Group is a conglomerate that concentrates on six industries -- real estate development, business management, culture and education, film and television transmission, leisure travel, as well as financial investment. The reform program to replace the business tax with a value-added tax has been expanded nationwide from the first of May, 2016, and the real estate company under Orsun Group has sold around 30 billion yuan since then, paid VAT 140 million, compared with the business tax burden fell 4.76%.
Figure: Wu Jiangang, Deputy Chairman of YRIC, Chairman of ORSUN Group
Mr. Wu indicated that the reform program to replace the business tax with a value-added tax is an important issue of the fiscal reform. One of its main purpose is to reduce costs and support enterprise development. Orsun Group as one part of private enterprises has faced certain obstacles in the past few years, however, the local government paid great attention to this issues and showed willingness to support the development of private enterprises. For instance, National Tax Bureau is a typical sector to support the development of private enterprises.
Wu Jiangang suggest that the replacement of business tax by value added tax has been hailed as a concrete step in deepening reform of China’s taxation sector. It is important to continue counseling and popularizing this policy as well as maintaining a good tax environment. Thus, merit bonus can be achieved.
Wu specially proposed the establishment of tolerance mechanisms. In his word, enterprises will encounter many difficulties inevitably, creating a more tolerant environment under permissions of laws and regulations will be a strong support for private enterprises.