Jilin makes all-out efforts to promote special funds for VAT credit refunds to directly reach prefecture and county levels

Updated : 2022-04-28Source : Jilin Daily
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Source: Jilin Daily
This year, China will implement a new package of tax-and-fee policies and provide support for local governments with special funds to make up for the reduction in fiscal revenue. By March 31, Jilin province had directly transferred the special fund for VAT credit refunds issued by the Ministry of Finance in full to the provincial, prefecture and county levels, with a total amount of 4.342 billion yuan. The direct fund transfer has guaranteed the refund of VAT credits to micro and small enterprises in time. 
In the allocation of special funds, the Provincial Department of Finance has studied and formulated management measures, mainly taking the amount of credit refunds to micro and small enterprises as the distribution basis. The fund has been weighted toward counties (districts) which bear more refund amounts. The department has made every effort to match subsidy funds with the scale of credit refunds, with the average subsidy proportion to prefecture and county governments reaching over 90 percent.
To ensure the rapid transfer to finance departments at all levels at the first time, the special fund for VAT credit refunds shall be managed as direct fund. Meanwhile, the fund shall be allocated separately by the state coffer according to local credit refund plans on a monthly basis, and the fund required for half a month's credit refunds shall be ensured to be dynamically stored in the state coffer of cities and counties.
The special fund for VAT credit refunds shall be incorporated into the monitoring system to reflect and dynamically monitor the allocation and use of the fund in real time, so as to guarantee the timely and full refund of VAT credits, to track the fund distribution at the prefecture and county levels, to prevent the misappropriation of idle funds, to ensure the implementation of national tax and fee cut policies, and to benefit market entities.