Targeted regulation of "drip irrigation" agriculture, rural areas and farmers: loan + tax reduction

According to the China Government website, Premier Li Keqiang of the State Council presided over an executive meeting of the State Council on December 3, which was deployed to promote the Zhongguancun pilot policy on a larger scale, speed up the construction of a national demonstration zone for independent innovation, and further encourage mass entrepreneurship and innovation. Decided to increase tax support for rural finance to promote the reform and development of agriculture, rural areas and farmers.

The meeting held that the work of "agriculture, rural areas and farmers" has always been the top priority of the government's work, and must not be relaxed for a moment. In accordance with the requirements of targeted regulation and control, it is necessary to strengthen the driving force and ability of finance to support the development of agriculture, rural areas and farmers by improving fiscal and taxation policies, which is of great significance in strengthening food security, increasing farmers' income, speeding up structural adjustment, and promoting agricultural modernization.

The meeting decided that in order to further alleviate the problem of high cost of agricultural loans, high risks and difficulties in loans for low-income farmers, the following two policies that have been implemented to expire will be extended to December 31, 2016: first, the interest income of farmers with small loans of no more than 50,000 yuan from financial institutions will be exempted from business tax and be included in the taxable income of enterprise income tax at 90%, so as to arouse the enthusiasm of financial institutions to lend to farmers. Second, the premium income of insurance companies carrying out planting and aquaculture insurance business shall be included in the taxable income of enterprise income tax at 90%, so as to expand insurance protection and services for farmers. At the same time, in view of the situation that farmers' loan demand is mainly concentrated in the range of 50, 000 yuan to 100000 yuan, the limit of small loans for farmers who enjoy tax concessions will be raised from 50, 000 yuan to 100000 yuan. and the preferential tax policy of reducing the business tax on the insurance income of county rural financial institutions by 3% will be extended until the end of 2016. Let the policy of benefiting farmers continue to work to promote agricultural development and increase farmers' income.

For the decision of this executive meeting of the State Council, both institutional researchers and grass-roots workers believe that they have grasped the key to the issue of agriculture, rural areas and farmers. This decision is not only the continuation and strengthening of the previous policy of supporting agriculture, but also the prelude to the upcoming central rural work conference and rural work conference. Agriculture, rural areas and farmers are still the deficiency and weak link of our national economy. Increasing support for agriculture, rural areas and farmers is the requirement of realizing the coordinated development of urban and rural areas, workers and farmers under the new normal, and is conducive to the gradual elimination of the dual structure of urban and rural areas. Finance is the core of modern economy, and it is also increasingly becoming the source of modernization of agriculture, rural areas and farmers. The policy of supporting agriculture combines finance with finance, grasps the bull's nose that stimulates the vitality of agriculture, rural areas and farmers, and brings new gospel to the development of agriculture, rural areas and farmers and county economy and finance. It is expected that this decision will bring great benefits to the operation of county financial institutions, especially will encourage the further expansion of agricultural credit and agriculture-related insurance business. " Gao Yuwei, a researcher at the Institute of International Finance of the Bank of China, told the Economic Information Daily.

The reporter learned from a survey in rural areas that although since the beginning of the year, the central government has repeatedly issued documents emphasizing that financial institutions should target blood transfusion "agriculture, rural areas and farmers," including targeted reserve reduction, etc., however, affected by factors such as insufficient collateral and poor rural credit environment, banks' support for financing for "agriculture, rural areas and farmers" is still limited. Especially some small credit loans, the risk is higher.

A person in charge of the "agriculture, rural areas and farmers" business of a bank from the grass-roots level said that increasing the preferential loans offered by financial institutions to farmers will undoubtedly increase the enthusiasm of financial institutions. "including increasing tax incentives, reducing the required reserve ratio for 'agriculture, rural areas and farmers' business and increasing the bad tolerance for 'agriculture, rural areas and farmers' loans will form a joint force to stimulate the business volume of financial institutions' agriculture, rural areas and farmers." He said.

"this time, extending the preferential time of the policy and raising the ceiling of the loan amount of farmers who enjoy tax concessions will undoubtedly stimulate the loan business of farmers." Another head of the bank's agriculture, rural areas and farmers business in Northeast China told the Economic Information Daily that, however, he also pointed out that because the preferential tax policy is not "universal benefit", the effect of the policy may be limited. He suggested that in addition to fiscal and tax policies, it is more important to innovate in some systems, such as the government to build a platform, to increase the collateral approved by more financial institutions and can dispose of in the future, and to introduce more government subsidies to further activate the rural financial market.