Changde Fully Promotes the Implementation of Sunshine Finance
The Changde Finance Bureau closely follows the Municipal Party Committee and the Municipal Government’s general strategy of opening up and developing industries to strengthen the city, insisting on planning in the overall situation and making great achievements in major issues to ensure that Changde’s financial work is striving to write high-quality development financial answers!
Night View of Changde
If the real economy is like a Rubik’s Cube, then the city’s large and small enterprises from all walks of life are its constituent elements: small squares. How to use financial funds to leverage this “Rubik’s Cube” and make it play the role of “fundamentals” has become a question that Changde Finance staff has been thinking about.
On September 1, 2017, the Fourth Plenary Session of the Seventh Session of the Changde Municipal Party Committee was held, which was destined to be important in the history of Changde’s industrial development. The Municipal Party Committee and the Municipal Government clearly proposed the development strategy of opening up and developing industries to strengthen the city.
In the past three years, the financial departments of Changde City have closely focused on that strategic deployment, following the trend, taking the initiative to act, and using the responsibility and the power of “finance” to contribute to industrial development.
Solid measures reduce taxes and fees to effectively alleviate corporate pressure
“Implementing a structural tax and fee reduction policy is not only a concrete manifestation of the implementation of a proactive fiscal policy, but also a key measure to directly address the pain points of enterprise development and help enterprises take the lead. The financial departments must take the initiative to implement it.”“Although tax cuts and fee reductions have reduced fiscal revenue, policy implementation is the overall picture, which must be strictly carried out.” Yang Tiansheng, Secretary of the Party Leadership Group, Director, and Second Inspector of the Municipal Finance Bureau spoke firmly.
A series of data witnessed benefits. In 2018, it realized the refund policy of reduction of 335 million yuan tax in the value-added tax rate for enterprises; in 2019, to further increase tax and fee reduction policies, taxes of more than 2.6 billion yuan for enterprises was reduced; in the first eight months of this year, the new added tax cuts and fees were 698 million yuan. In terms of reducing corporate social security contributions, the Municipal Finance, Human Resources, Social Security Bureau and other departments have fully implemented the phased reduction of corporate pension insurance, unemployment insurance, work-related injury insurance and other social insurance rates. In 2017, 2018 and 2019, 252 million yuan, 350 million yuan and 422 million yuan were saved respectively in costs for enterprises. In the first three quarters of this year, the city has reduced or exempted 953 million yuan in social insurance premiums for various enterprises, and it is expected to reach 1.26 billion yuan for the whole year. In terms of streamlining administrative fees and government funds, the financial department strictly implemented the relevant higher-level policies such as cancellation, suspension, slowing down of levy and bid reduction. In the past three years, the city level alone has reduced the burden of enterprises by more than 150 million yuan. These preferential policies for taxes and fees for real money have given the majority of enterprises in the city a real “policy package”.
It not only does a good job of “reduction”, but also performs well in “complementation”.
The government has subsidies for enterprise employment. In 2018, the Changde Municipal Bureau of Human Resources and Social Security and the Municipal Finance Bureau jointly issued the “Opinions on Strengthening Enterprise Employment Service Work”, taking multiple measures to serve and help enterprises to alleviate the shortage of technical jobs. According to statistics, since 2018, the city has issued more than 5 million yuan in labor service bonuses. In order to improve the vocational skills, employment and entrepreneurship capabilities of workers, the Municipal Finance has allocated 92.05 million yuan in special funds to strive to make the city’s skilled workers in the city account for more than 25% of the total number of employees, of which highly skilled personnel account for more than 30%. Since 2019, nearly 90,000 people have been trained in vocational skills improvement actions in the city.
The measures to reduce the cost of enterprise factors go far beyond labor subsidies. In order to further reduce the cost of enterprises and revitalize the real economy after the introduction of the “Ten Articles for Helping Industrial Enterprises in Changde” in 2016, in 2017, the Municipal Finance and the Ministry of Industry and Information Technology conducted serious investigations and calculations, prompting the Municipal Government to issue the “Notice on Further Reducing Fees and Burdens to Promote the Healthy and Stable Development of Industrial Enterprises”, supporting enterprises in terms of gas, electricity, water and land use.
In 2018, the finance and industry and information departments of Changde City followed the suggestions of enterprises and formulated the “Notice on Further Reducing the Construction Costs of Industrial Enterprises”, and once again increased the reduction and exemption of urban infrastructure supporting fees, air defense basement relocation construction fees, and soil and water conservation compensation fees paid by large-scale industrial enterprises for new productive construction projects (production plants, warehouses, R&D centers, etc.) During the three-year period, it can reduce the burden of the enterprise by more than 70 million yuan each year.
In order to reduce the production costs of industrial enterprises during the epidemic and help enterprises boost their confidence, the Municipal Finance and Industry and Information Department actively proposed subsidies for the electricity and gas consumption of industrial enterprises during the epidemic, benefiting 239 enterprises in the city. “Although the amount is not large, we really feel the warmth of the government and departments.” The person in charge of Hunan Changde Southern Cement Co., Ltd. was deeply moved by receiving a subsidy of 82,000 yuan for electricity and gas.
The development award is an accelerator to effectively promote the development of the Zone
Rows of factories have been erected, modern workshops have been put into production, and batches of products have successfully rolled off the production line... This is the Taoyuan High-tech Zone, with nearly one million square meters of standardized factory buildings, and more than 180 industrial enterprises settled in. In 2018 and 2019, Taoyuan High-tech Zone won a total of 37.09 million yuan in financial awards due to the construction of standardized factory buildings.
The key to economic development lies in industry, and the key to development of the latter lies in the zone. In order to promote the development of the zone, since 2013, the Municipal Finance has set up a subsidy fund for the construction of standardized workshops in the zone every year. Up to now, more than 300 million yuan has been granted as a reward.
“Every year, the Municipal Government assesses industrial parks in terms of speed and efficiency, basic investment, new projects, industrial investment and industrial cultivation”, introduced a leader in Municipal Finance Bureau. In the annual assessment, the top 3 parks can receive a reward of 200,000 yuan; in the evaluation of provincial industrial parks, those whose ranking is higher than the previous year will get the rewards. At the same time, 200,000 yuan will be awarded to the parks that have been approved as provincial high-tech zones during the year.
With the support of financial incentives and subsidies, the development of the zone is much more stable.
Taoyuan High-tech Zone has basically formed “two main and two special” advantageous industries, namely two leading industries—electronic information, aluminum deep processing and new materials, and two characteristic industries—intelligent machinery manufacturing, and natural selenium-rich agricultural products deep processing.
From 2018 to 2020, Changde Municipal Finance implemented 100 million yuan in subsidies for infrastructure and supporting construction of the high-tech zone annually. Municipal construction such as roads, water supply, power supply, and public transportation connected with the high-tech zone are included in the overall urban planning, which promotes the integration of infrastructure facilities, and improves the endogenous development capabilities and infrastructure supporting conditions of high-tech zones. In particular, it has promoted the rapid development of leading industries such as intelligent equipment manufacturing, and built the largest, most advanced and most environmentally friendly tower crane intelligent production base in the world, as well as a leading domestic hydraulic cylinder production base. Hunan Zoomlion Construction Hoisting Machinery Co., Ltd. became the first ten-billion-yuan enterprise in the equipment manufacturing industry in Changde.
The science and technology award effectively stimulates enterprise innovation
Finger-sized “light pieces” were spliced into various shapes required by users in a “building block” manner, powered on, and then lit up.
This is the early product of Hunan Yuegang Moko Industrial Co., Ltd., photoelectric lighting products. “These products used modular new materials and were designed, manufactured, and assembled under the modular theory,” said Tan Dongsheng, vice president of the company. Since its establishment, the company has invested more than 100 million yuan in research and development funds and currently has 355 patents. In 2019, the number of authorized invention patents ranked among the top 5 in the city, and the company won 250,000 yuan for the Municipal Finance Science and Technology Innovation Award.
In order to encourage enterprises to have high-quality development through innovation, from 2016, the Municipal Finance and Municipal Science and Technology Departments have implemented major scientific and technological projects. They give three years of rolling support, and each company will be given a bonus of one million yuan each year. So far, 54.5 million yuan has been granted. At the same time, since 2017, the Municipal Finance has provided a one-time bonus of 100,000 yuan for newly recognized (excluding re-evaluation) high-tech enterprises. Up to now, 164 high-tech enterprises have received this award, which has effectively promoted enterprises to increase R&D investment.
Personalized rewards are a catalyst to effectively guide the development of enterprises
In the intelligent production plant of Hunan Zoomlion Construction Hoisting Machinery Co., Ltd., the world’s largest single tower crane production base, robots in the intelligent warehouse area are picking up and transporting materials in an orderly manner in accordance with instructions.
Since its establishment in Changde High-tech Zone, Hunan Zoomlion Construction Hoisting Machinery Co., Ltd. has been vigorously promoted by continuously promoting manufacturing upgrades, and has been awarded personalized awards for large-scale industrial enterprises established by the Municipal Finance for two consecutive years. In 2018, it won the Growth Excellence Award with a bonus of 1.5 million yuan; in 2019, with the company’s actual tax payment (value-added tax, corporate income tax) exceeding 100 million yuan for the first time, it won the tax contribution award with a bonus of 3 million yuan.
This year, it has risen in the market under the epidemic. “In May, the company’s single-month tower crane production and sales increased by 67% compared with the corresponding period last year, and the elevator production and sales increased by 100% year-on-year. At present, we have a very good demand in the market.” said Teng Mingyou, secretary of the Party Committee of the company.
In order to encourage enterprises to grow bigger and stronger, starting from 2017, the Municipal Finance awards 50,000 yuan to each of the first-time industrial enterprises to encourage the growth of the small and middle enterprises. In the past three years, 552 companies in the city have received awards, with a total bonus of 27.6 million yuan.
Nowadays, with the strategic determination of the Changde Municipal Party Committee and the Municipal Government, and the guidance of financial funds, a magnificent picture of the rapid development of high-tech zones, enterprises and industries is being painted on the land of Yuanli!