Li Keqiang finally responded to the "death rate": mainly because the non-tax burden is too heavy

On January 4, Premier Li Keqiang held the first executive meeting of the State Council in 2017. In response to the recent high corporate tax burden, Li Keqiang said that mainly the non-tax burden of enterprises is too heavy. “Where is the high cost of the company, is it not too expensive for institutional transactions?”
At the meeting, Li Keqiang further pointed out that to promote the reform of decentralization and decentralization, it is necessary to cancel the examination and approval projects, shorten the approval process, and effectively clean up various unreasonable charging items such as intermediaries, thus truly reducing the institutional transaction costs of enterprises.
Li Keqiang pointed to the materials in his hand as an example: "In the past, there were some approval items, such as 'public seal engraving', and repeated examination and approval by several departments, resulting in a formal and complicated process of engraving, which was extremely complicated and time consuming. However, the fake and shoddy official seals were engraved. It’s very fast. Government officials can’t sit in the office to collect documents and draw circles! It’s necessary to really understand what kind of services the market players need and to transform government functions!” “The general principle is one sentence: Open, you have to manage it!"
The meeting decided that on the basis of the cancellation of the 230 administrative examination and approval items implemented by the central designated places, the 53rd licenses for private school enrollment brochures and advertisement registration approval and cotton processing qualifications will be cancelled, and the railway transportation basis for legal qualifications will be cancelled. 20 intermediary services related to the approval of equipment manufacturing enterprises.

Attached to the State Council full text:
"Why did Li Keqiang take Jane’s decentralization as a "head shot" for five consecutive years? 》
In the first executive meeting of the State Council in 2017, the "dumping gun" deployed by Premier Li Keqiang was still "simplified and decentralized."
The three issues identified at the meeting corresponded to the three levels of the “distribution management” reform: decision to cancel the administrative licenses implemented by a number of designated central areas and clean up and standardize a number of administrative examination and approval intermediary services; Five" market supervision planning; deployment of innovative government management to optimize government services.
Seriously sorting out the first issue of the State Council's executive meeting in the previous four years, we will find that: the first executive meeting after the establishment of the current government in March 2013, focusing on the promotion of the transformation of government functions; the first executive meeting in 2014, decided to further deepen Three measures for the reform of the administrative examination and approval system; the first executive meeting in 2015 to determine the norms and improve administrative approval measures; the executive meeting on January 13, 2016 decided to introduce a number of reform measures for decentralization and decentralization. For five consecutive years, the "heads of guns" of the current central government work are all "simplified and decentralized."
A leadership meeting of the State Council said that this year's first executive meeting of the State Council is still deploying and promoting decentralization and decentralization, which fully demonstrates the determination and attitude of the current government to "persist the reform without wavering." Premier Li Keqiang also reminded the participants in the discussion that they must proceed from the actual functions of their respective departments and seriously study the approval of the cancellation.
"It can be said that the reform of our 'distribution suit' has now entered the 'deep water zone'." The Prime Minister said, "The cancellation now is no longer the 'obviously unreasonable' approval before, but the real 'hard bones' 'But the 'bone' is harder and we have to '啃'. The reason why we tightly hold the 'bovine nose' of the simple administration and decentralization is to gradually clarify the boundaries between the government and the market, and further stimulate the vitality and creativity of the market. Emancipate and develop productivity!"

Reform is never ending, the fundamental purpose is to liberate and develop productivity
Li Keqiang stressed that the promotion of "distribution suits" and the further transformation of government functions are the reforms that affect the "bovine nose".
"We promote the structural reform of the supply side. The most basic content is to promote decentralization and decentralization, and accelerate structural tax cuts. Only by making these reforms deeper into the depths can we truly stimulate market vitality and social creativity." The Prime Minister said.
At the beginning of the establishment of the current government, Premier Li Keqiang publicly promised at the press conference that more than one-third of the more than 1,700 administrative examination and approval items existing in various departments of the State Council should be cut. Now, the current central government not only overfulfills the promised goals and tasks in advance, but also continues to "plus" to deepen this reform.
Li Keqiang reiterated at the executive meeting on January 4 that the key to realizing the decisive role of market allocation of resources and better playing the role of the government is to handle the relationship between the government and the market.
He reminded the responsible persons of the relevant departments to be aware of the fact that there are still many administrative examination and approval items that need to be cleaned up, and the reform of the "distribution service" cannot be relaxed.
"I said, 'The world is full of jealousy and the people are poor.' Only by untie the ropes that bind the hands and feet of the people, can we truly play the wisdom and creativity of 1.3 billion people!" The Prime Minister said, "The reform is endless, we The most fundamental purpose of reform is to liberate and develop productive forces."

Where is the high cost of the enterprise, and is it not too expensive for institutional transactions?
"Recently, there is a voice that the corporate tax burden is too high. In fact, it is mainly to carefully calculate the account, mainly because the non-tax burden of the enterprise is too heavy. Where is the high cost of the enterprise, is it not too high for institutional transaction costs?" Li Keqiang said.
He further pointed out that to promote the reform of decentralization and decentralization, it is necessary to cancel the examination and approval projects, shorten the approval process, and effectively clean up various unreasonable charging items such as intermediaries, thus truly reducing the institutional transaction costs of enterprises.
The meeting decided that, on the basis of the cancellation of the 230 administrative examination and approval items implemented by the central designated places, the 53rd licenses for private school enrollment brochures and advertisement registration approval and cotton processing qualifications were cancelled, and the railway transportation with legal qualifications was cancelled. 20 intermediary services related to the approval of basic equipment manufacturing enterprises.
Li Keqiang pointed to the materials in his hand as an example: "In the past, there were some approval items, such as 'public seal engraving', and repeated examination and approval by several departments, resulting in a formal and complicated process of engraving, which was extremely complicated and time consuming. However, the fake and shoddy official seals were engraved. It’s so fast. Government officials can’t sit in the office and collect documents and circles! It’s necessary to really understand what kind of services the market players need and to transform government functions!”
He finally stressed: "The general principle is one sentence: it must be put open and it must be managed!"

Minimize discretion and effectively reduce the burden on market players and people
How to really "control" while "putting it open"? The "prescription" given by Li Keqiang is: to promote comprehensive market supervision in accordance with the law.
The meeting confirmed that during the “Thirteenth Five-Year Plan” period, efforts should be made to create “three environments”: a relaxed and convenient access environment, a fair and orderly competitive environment, and a safe and secure consumer environment. Li Keqiang explicitly requested the relevant departments to make efforts to "simplify the rigorous" and promote comprehensive market supervision while increasing supervision.
"Some of them have no name 'fee' at all. The regulators say that the company is fined and said that the payment is paid. How can the cost of the enterprise be low?" The Prime Minister said, "We must stand in the enterprise and stand on the side of the people. Think about the problem! All departments must unify their thinking, so that grassroots law enforcement agencies can effectively implement comprehensive law enforcement, and at the same time promote 'two random and one open' in law enforcement, minimize discretion, and effectively reduce the burden on market players and people!"
Li Keqiang finally stressed: "The reform of 'distribution suits' will be promoted in a consistent and persevering manner. This is the fundamental move to deal with the relationship between the government and the market and transform the government's functions. Only by persisting in this reform, the vitality of the enterprise Only in order to really get the bursts, the people can get benefits from it."

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