5. Progress in fiscal, taxation, and related reforms

We comprehensively implemented VAT reform, eliminated instances of duplicate tax charges and optimized the taxation system. We proceeded smoothly with the reform of taxes and fees on refined oil products, clarifying what these taxes and fees are, standardized government fee collection practices, and established an effective long-term mechanism for raising highway construction funds and a new mechanism for using tax policy to guide energy consumption. We improved policies on the implementation of the Law on Corporate Income Tax. We comprehensively implemented the revised Provisional Regulations on Business Tax and the detailed rules for implementing them, and improved business tax policies. We adjusted the sales tax policy on tobacco products. We unified real estate tax regulations for domestic and overseas-funded enterprises and Chinese and foreign nationals. We improved the system of transfer payments to ethnic minority areas as well as the methods for making transfer payments to cities once dependent on now-depleted mineral resources and to major functional ecological zones. We explored ways to create a mechanism to ensure basic funding for county-level governments, and steadily carried forward the reform to place county finances directly under the management of provincial governments. We deepened the reform of the budget management system, and continued to push ahead with reforms of the systems for departmental budgeting, centralized treasury collection and payment, and government procurement. We instituted the reform of tenure in collective forests throughout the country. We helped 14 selected provincial-level administrative areas repay 49.3 billion yuan of debts incurred in providing nine-year compulsory education in rural areas. The trial of a government award and subsidy system for village-level public works projects, the launching of which will be determined by the villagers through deliberation, was expanded to 17 provincial-level administrative areas, resulting in investment exceeding 60 billion yuan and benefits for 260 million farmers.