Yin Zhaolin, deputy to the National People's Congress: Expanding the scope of exemption from import tax on scientific research supplies

In 2016, the three departments of the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation jointly issued the Notice on The Tax Policy on Supporting Scientific and Technological Innovation during the 13th Five-Year Plan period, which clearly exempts scientific research, scientific and technological development and teaching supplies that cannot be produced or performed in china by scientific research institutions, technology development institutions, schools and other units, and exempts them from import duties and import value-added tax and consumption tax. Yu Zhaolin, a representative of the National People's Congress and general manager of Sinopec's Maoming Petrochemical, said the policy has clear limits on the research and development institutions that enjoy tax exemptions and is not conducive to enhancing the enthusiasm of enterprises to innovate in research and development.
In a speech last year at the 19th Congress of Academicians of the Chinese Academy of Sciences and the 14th Congress of Academicians of the Chinese Academy of Engineering, the state leaders pointed out that enterprises are the main body of innovation and the driving force of innovation and creation, and that enterprises should be promoted to become the main body of technological innovation decision-making, research and development investment, scientific research organization and achievement transformation, and cultivate a number of innovative leading enterprises
China
with outstanding core technical capabilities and strong integration and innovation capabilities. This year's Government Work Report proposes to improve the integrated innovation mechanism of industry, science and research with enterprises as the main body, and to make efforts to promote the reform of science and technology system, we must not let the reform policy stay on oral and paper.
However, the scope of implementation of the policy is mainly state ministries, directly affiliated institutions and provinces, autonomous regions, municipalities directly under the Central Government, the planned cities of various types of scientific research institutes engaged in scientific research work, the process of scientific and technological system reform into enterprises and enterprises mainly engaged in scientific research and technology development institutions, national engineering research centers, national enterprise technology centers.
In order to give full play to the role of enterprises as the main body of scientific and technological innovation, Yu Zhaolin suggested that the scope of implementation of the policy should be expanded to include state-owned large and medium-sized enterprises directly under the scientific research units, through the identified provincial enterprise technology center, provincial engineering and technology research center, etc. in the scope of research and development institutions that can enjoy the import duty-free policy.
said that if the price of an imported instrument is 1 million yuan, the import tariff and value-added tax will be about 26% of the import price of imported goods at an average tariff rate of 8.8% (taxed on import prices) and 16% at the value-added tax rate (based on import price and tariff). After enjoying the duty-free policy, it can save about 260,000 yuan in import tax for enterprise research and development institutions. This will further enhance the enthusiasm of enterprises to research and development innovation.