Reduce tax revenue by reducing tax rate, canceling or stopping some taxes, and reduce the proportion of tax revenue in gross national product or national income. The result of tax reduction will increase the disposable income of enterprises and individuals, thus playing a role in expanding demand.

Like tax exemption, it is also a policy measure formulated by combining the seriousness and flexibility of taxation, and it is a generally adopted tax preference method. Because tax reduction and exemption are often combined in tax law, people are used to calling them tax reduction and exemption. Tax reduction is generally divided into statutory tax reduction, specific tax reduction and temporary tax reduction.

Extended information

"Tax reduction and fee reduction" specifically includes "tax reduction and exemption" and "cancellation or suspension of administrative fees".

In the individual tax reform plan, some income items, such as wages and salaries, remuneration for labor services, remuneration for manuscripts, etc., will be taxed on an annual basis. The Ministry of Finance will also consider appropriately increasing the special expenses deduction items related to family livelihood, such as the education expenses of the "two-child" family and other special deduction items.

in terms of fee reduction, the fee reduction in 217 is about 2 billion yuan. The Ministry of Finance focuses on two tasks, including comprehensively cleaning up and standardizing government funds. After the reform is in place, there will be 21 government funds left in the country; Cancel or stop collecting 35 enterprise-related administrative fees, and reduce the central enterprise-related fees by more than half, leaving 33 items.

Baidu Encyclopedia-Tax Reduction and Fee Reduction

Baidu Encyclopedia-Tax Reduction Policy