国办发（1989）1号
（January 3， 1989）
颁布日期：19890103 　实施日期：19890103 　颁布单位：国务院办公厅

　　The report “Suggestions Concerning the Appraisal¹， Rectification²， and Strict Control of Tax Reductions and Exemptions⁵” submitted by the State Taxation⁶ Administration has been approved by the State Council， and is now hereby transmitted for implementation⁸. Please report the results of appraisal and rectification to the State Council by the end of March， 1989.

　　SUGGESTIONS CONCERNING THE APPRAISAL， RECTIFICATION， AND STRICT CONTROL OF TAX REDUCTIONS OR EXEMPTIONS

　　Last year， after the promulgation⁹ of “Decisions Concerning the Better Enforcement of Taxation Laws and Discipline and the Improvement of Tax Collection” by the State Council， each locality investigated and appraised¹⁰ cases where excessive authority was used to grant tax reductions or exemptions and rectified¹¹ some of them. Definite positive effects have been achieved as a result. However， because some localities have placed undue¹² emphasis on partial and local interests， this issue has not been thoroughly¹³ investigated and rectified， and those cases that should be corrected remain uncorrected. Since this year， some localities have been continuously exceeding their authority to reduce or exempt³ taxes on new items. This has seriously affected¹⁴ the macro-control of the national economy and the stable increase official revenue. In conformity¹⁵ with the requirements of the State Council on the prohibition¹⁶ of the downward spread of the power of tax collection and the strict control of tax reductions and exemptions， the whole-hearted rectification of reduced and exempted¹⁷ taxes， suggestions concerning the appraisal， rectification， and strict control of tax reduction and exemption⁴ are hereby put forward as follows：

　　1. In order to strictly¹⁸ control the blind development of some special kinds of consumer goods and goods in over-supply， no locality may reduce or exempt product taxes or value-added taxes on tobacco， alcoholic¹⁹ beverages²¹， firecrackers， fireworks， clocks， watches， bicycles， sewing machines， electric fans， refrigerators， motorcycles， washing machines， vacuum cleaners， air conditioners， electronic keyboards， pianos， TV sets， tape recorders， cassette players， video cassette recorders， electronic video games， pull-top cans， canned beverages， aluminum²² doors or windows， architectural decorations， kilowatt-hour meters， saccharin²³， adhesive²⁴ clay bricks or tiles， cosmetics²⁵ for the skin and hair， and articles for use in a memorial ceremony， which are produced or marketed in that locality， regardless of the ownership or type of enterprise. No product tax， value-added tax， or income tax may be reduced or exempted for small scale wool mills， cotton mills， silk mills， oil refineries²⁶， lacquer factories， metal rolling factories， cigarette factories， or alcoholic beverage²⁰ factories.

　　The reduction or exemption of taxes on all aforesaid items that have already been approved shall be suspended and normal collection resumed as of January 1， 1989. From now on， in order to meet the demands of state macro-control， the State Taxation Administration is authorized²⁷， when necessary， to list additional items that may not be subjected to tax reductions or exemptions.

　　2. For importing market-saturated goods， consumer goods for which market prices have been freed， and state-restricted imports， product taxes and value-added taxes on the importation of these goods may not be reduced or exempted. For export products manufactured by enterprises， a complete tax refund²⁸ will be given at the time of export， and therefore no product tax or value-added tax on the production of export products manufactured by enterprises maybe reduced or exempted.

　　3. Appraisal and rectification of tax reductions or exemptions for various companies. Taxes on comprehensive companies， banking²⁹ companies and companies in service industries should be collected according to stipulations and regulations. No product tax， value-added tax， or business tax which should be paid may be reduced or exempted， and such reductions or exemptions which have been approved should be suspended immediately. In the event of true difficulties in paying income taxes during the early stage of operation， the period of the reduction of or exemption from income tax shall be less than one year； reductions or exemptions from income tax that have already been approved to exceed one year shall be enforced according to the above regulations.

　　4. The unified³¹ preferential policy of tax reductions or exemptions for township enterprises stipulated³² by the state shall continue to be implemented³³， and within the limits of their respective authorities over tax administration， all localities shall strictly control the reduction of or exemption from product taxes， value-added taxes， and business taxes. Approvals of tax reduction or exemption by any locality which exceeds its respective authority shall cease immediately. After strict verification， a special consideration of one year reduction of or exemption from income tax may be granted to a small number of enterprises that have authentic³⁴ difficulties in paying taxes in the early stage of operation. Any alteration³⁵ of income tax rates or any collection at a reduced portion of the tax rate by any locality must be corrected and normal collection resumed. The range of itemized expenditures³⁶ before income tax payment shall be implemented strictly in accordance with the provisions uniformly stipulated by the state， and may not be extended without authorization³⁷. The examination and approval of reductions or exemptions for township enterprises should be handled strictly in accordance with the stipulations by present administrative³⁸ systems， and the power of examination and approval may not be transferred to lower levels of authority. After the period for tax reduction or exemption for enterprises comes to an end， no enterprise may obtain further tax reductions or exemptions by changing factory names， product names， or the trademarks³⁹ thereof， nor through other fraudulent means. The discovery of such acts shall be treated and prosecuted⁴⁰ as tax evasion⁴¹.

　　5. All localities and departments must strictly implement⁷ the uniform national policies governing foreign-related taxation， and may not exceed their respective authorities to determine preferential treatment on foreign-related taxation. All unauthorized decisions on reduction of or exemption from taxes， which are in violation⁴² of uniform national taxation laws and administrative regulations promulgated⁴³ by the State Council， are invalid⁴⁴ and should be publicly repealed⁴⁵ and corrected.

　　6. In order to make greater efforts to cut down the scale of infrastructure⁴⁶ construction， the macro-control role of the construction tax should be fully⁴⁷ brought into play， and a construction tax on construction investments made outside the state plan shall be strictly imposed. No locality or department may reduce or exempt taxes without authorization， with the exception of those tax reductions or exemptions stipulated uniformly in taxation laws and regulations.

　　7. The tax authorities at various levels shall strengthen their supervision⁴⁸ and control on tax reductions or exemptions and rigorously enforce procedures of examination and approval. In handling tax reductions or exemptions， all tax authorities at various levels shall implement laws and regulations impartially⁴⁹， and may not abuse their authority for selfish benefits. With respect to those items of tax reduction or exemption of very large amounts or wide spread influence， the tax authorities shall carry out specific investigations⁵⁰， examine them collectively， and report to higher authorities level by level for approval. No individual may make decisions regarding tax reductions or exemptions， and those who are in violation of this stipulation³⁰ shall be severely⁵¹ punished.

　　8. The appraisal and rectification of tax reductions or exemptions is a policy-oriented task. It involves the economic interests of all localities， departments， and units. The local people's governments at various levels shall strengthen their leadership and make earnest appraisals⁵² and rectification's from the perspective of the general public interest and macro-scopic demands. We suggest one leader from each province， autonomous region， and municipality directly under the Central Government be appointed to take charge of this task