DAI Zhixin: Adding Tax Support for Promoting Large-scale Equipment Upgrades and Trade-in Programs for Consumer Goods

DAI Zhixin, research fellow at the National Academy of Development and Strategy and an associate professor at the School of Finance of Renmin University of China, published a commentary article in China Financial and Economic News.

This article primarily discusses the importance of promoting large-scale equipment upgrades and trade-in programs for consumer goods, as well as the role of tax support in this process. The current tax policy framework already includes several preferential policies related to equipment upgrades and trade-ins, covering tax support for specific industries, types, and investment equipment. Additionally, there are tax support policies for housing and car trade-ins, such as personal income tax incentives and deed tax subsidies. The implementation of these tax policies is not only a project benefiting the people but also a practical necessity to improve the quality of the national economic cycle and promote high-quality economic development, which is crucial for sustaining economic growth.

The article also proposes four suggestions: Firstly, to broaden the scope of tax support policies to mobilize the enthusiasm of enterprises and consumers for investment and consumption, thereby enhancing the quality and level of the national economic cycle. Secondly, to align tax support with standards such as technology, energy consumption, and emissions, in order to guide enterprises and consumers towards higher technology, energy-efficient, and environmentally friendly equipment and products. Thirdly, to start from key areas and steadily advance tax support policies in an orderly manner, prioritizing support for sectors with significant economic and social benefits. Finally, to optimize tax support measures by considering the differences in the demand for different equipment and products, adopting differentiated tax policy measures to avoid a one-size-fits-all approach and fully unleash the dividends of tax policy.

The article emphasizes the crucial role of tax support in promoting large-scale equipment upgrades and trade-ins for consumer goods and puts forward a series of specific policy recommendations to promote high-quality economic development and improve the quality of the economic cycle.

(Translated by ZHANG Yuqing; Proofread by YANG Fanxin)