The burden of reducing the profitability of Chinese enterprises is a major burden

According to the “National Enterprise Burden Survey and Evaluation Report” released by the Ministry of Industry and Information Technology on the 18th, the gross profit margin of the company decreased from 19% in 2013 to 16.36% in 2014. The proportion of main business tax and additional business accounted for the main business income from 2013. 2.33% increase...
According to the "National Enterprise Burden Survey and Evaluation Report" released by the Ministry of Industry and Information Technology on the 18th, the gross profit margin of the company fell from 19% in 2013 to 16.36% in 2014. The proportion of main business tax and additional business accounted for the main business income from 2013. 2.33% increased to 2.48%. At the same time as the profitability declines, the burden is still heavy.

The Ministry of Industry and Information Technology issued the report at the launching ceremony of the National Publicity Reduction Policy Promotion Week held on the 18th. Qin Zhihui, director of the Small and Medium Enterprise Development Promotion Center of the Ministry of Industry and Information Technology, said at the meeting that these figures show that the tax burden of enterprises is still very heavy, and the funds available for retention and reinvestment are limited. If we used last year as the benchmark, the average comprehensive burden index of enterprises in various provinces and cities this year was 0.84. Although there was a slight decline, the gap between regions was large, and the gap between industries was becoming more and more obvious.

Qin Zhihui believes that the burden of enterprises is aggravating. Despite the objective problems of rising labor costs, expensive financing, and tight economic environment, fees are still the main reason. The report shows that in the payment of expenditures, the proportion of government funds and administrative fees has declined, while the proportion of operating service charges related to administrative licensing has increased. Some departments and some local governments still have illegal charges. In addition, some industry associations have increased the burden on enterprises.

The Ministry of Industry and Information Technology proposes to establish a national information reporting and investigation system for the four levels of enterprises at the national, provincial, municipal and county levels, to track the burden of enterprises, and to promote the legislation on corporate rights protection. At the same time, we will establish an open, transparent and perfect charging system and a multi-evaluation system, and adopt a multi-pronged approach to truly reduce the burden on enterprises.

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