Research on the Impact of a New Round of Tax Reduction and Fee Reduction Policies on the High Quality Development of Small and Medium-sized Enterprises

Abstract

As a powerful measure to deepen the supply-side structural reform, tax reduction and fee reduction policies play an important role in promoting the high quality development of small and medium-sized enterprises(SMEs).This paper selects 582 SMEs listed on China's A-share market from 2018 to 2021 to measure their high quality development level and explore the policy effect of the new round of tax reduction and fee reduction policies implemented since 2018.The results show that the reduction and exemption of value-added tax(VAT) and social insurance premiums are conducive to improving the high quality development level of SMEs, and the impact of income tax reduction on the high quality development level of enterprises is not significant, and the income tax burden between enterprises is quite different. Therefore, this paper puts forward some policy suggestions to further implement of the tax and fee reduction policies, consolidate the achievements of the existing tax and fee reduction policy, improve the tax structure of enterprise VAT and social insurance premiums, implement differentiated income tax reduction and exemption policy, and guide the high quality development of SMEs.