Ensure companies get the substantial benefits of tax cuts: Premier Li

China will continue to push forward reform and opening up to energize the main market players, strengthen the driving force for economic development, tackle the challenges in economic development and better people's livelihoods, China's Premier Li Keqiang said.

Li made the remarks while attending the Boao Forum for Asia (BFA) in south China's Hainan Province, and visited Haikou, the capital city of the province on Wednesday.

Starting from April 1, China's massive reduction of the value-added tax (VAT) will take effect. It is expected to cut 2 trillion yuan (298 billion U.S. dollars) in taxes for more than 30 million enterprises in China.

Ensure companies get the benefits of tax cuts

During Premier Li's visit to Jinpan Technology, a manufacturer of electrical equipment, he was told that the company will save more than 20 million yuan in taxes under the VAT cuts, and the company plans to invest the money to build a new plant.

"The purpose of the big scale cuts is to leave more profits to companies, boosting the companies' capability and confidence to develop new business, providing more employment opportunities," Li said.

When Li talked with the company's employees about the tax cut policies, they all agreed that the cuts are the most efficient and fair way to boost the economy.

Premier Li also demanded that tax departments promptly and seriously address problems submitted by the companies, ensuring the companies get substantial benefits from the tax cuts.

Support community care providers

During Li's visit to Xin'an community care center, he said that China will launch supportive tax and fee reduction policies to tackle the shortage in care for the elderly and children.

"China will launch tax cuts policies for houses that are being used for the care of the elderly and children, to encourage more societal forces to enter the community care industry, providing safe and quality care for children and the elderly," Li said.

Talent upgrade

While visiting Hainan College of Economics and Business, Li was very pleased to learn that the college will enroll 1,000 more students this year as well as cooperate with enterprises to enroll an additional 500 students.

He expressed hope for the college to reform and improve the examination enrollment methods in order to increase enrollment of not only newly-graduated high school students, but also retired military personnel, laid-off workers and migrant workers.

He also advised the college to work on inviting more experienced enterprise talents to go teach in class through school-enterprise cooperation.

In the training workshop, Li encouraged students to focus on cultivating professionalism and craftsmanship. He said that China needs high-end scientific research talents as well as highly skilled personnel, and noted that becoming highly skilled will increase their employment prospects and earnings.

He stressed that vocational education is effective in combining education in the classroom and social reality. It is necessary to deepen the reform on the education system in the cultivation of talents so that they will, in turn, contribute to the high-quality development of the country's economy.

Li recognized the achievements of Hainan's development and hoped the province will have greater achievements by following the central government's guide in reform and opening up.

(ASIA PACIFIC DAILY)