Reborn in 1977

Chapter 654 Tax Incentives

Although the Lu Family Bay had the initiative, Secretary Yang and the others also moved quickly.

Every day, he and Captain Zhang would go to find Secretary Qian and the other two, and the five of them would close the door to negotiate.

This frequent interaction led the Nanhu Commune to know that the Lu Family Bay was going to make a big move, but under the temptation of "first righteousness," those in the know kept the secret strictly. After several days, outsiders did not find out the specific news.

In a small place like the Nanhu Commune, such confidential matters were very rare, and for a time, people throughout the commune were talking about it, with all sorts of rumors flying around.

In the evening, the leaders of the brigade headquarters would come to Chen Fan to freeload a meal, and by the way, tell him in detail the content of the negotiations during the day, and then Chen Fan would make the decision.

Thus, when all the lotus roots in the entire brigade were dug up and sold to the supply and marketing cooperative, the Lu Family Bay finally reached an agreement with the Nanhu Commune.

During this negotiation process, Chen Fan also learned a lot about issues he had not paid attention to before.

For example, taxes.

Anquan used to be a cadre of the Nanhu Tax Office. If it hadn't been for the restoration of the college entrance examination, he would probably have succeeded the newly retired director and become one of the most miserable people in the Nanhu Commune.

Ah, yes, the current grass-roots tax officials, especially those in the communes, can be described as miserable.

No wonder when Anquan was still in the Lu Family Bay, he rarely mentioned his work in the tax office. Every time he mentioned it, it was a flood of bitter tears.

The current fiscal revenue can be roughly divided into two major blocks.

One block is the profit turned over by state-owned enterprises. Under normal circumstances, the production plan and product destination have been formulated long ago. As long as the operation is normal, state-owned enterprises have almost no possibility of losses.

And the annual operating income will also be turned over according to a certain percentage, which is also the main source of revenue for all levels of finance from top to bottom.

The other block is the tax revenue that is well known in later generations.

State-owned enterprises have already turned over profits, so naturally they will not pay large amounts of taxes, at most just some routine taxes.

The grass-roots collective enterprises, which should now be called "commune and team units," that is, profit-making units run by communes and production teams, have become the main tax targets.

The main taxes levied include: unified industrial and commercial tax (equivalent to the current consumption tax, value-added tax, and business tax), enterprise income tax, slaughter tax, agricultural tax (grain delivery), animal husbandry tax (calculated based on animal husbandry income in the collective economy), livestock transaction tax, vehicle and vessel tax, etc.

Leaving aside other taxes unrelated to enterprises, community and team enterprises have to face two kinds of taxes, the unified industrial and commercial tax and the enterprise income tax.

In particular, the enterprise income tax implements a progressive tax rate. The minimum tax rate is 10%, and the maximum tax rate is terrible. If the income of this unit is quite considerable, then the tax rate on the excess part is 55%!

Who can stand this?!

As a result, the difficulty of tax collection has become a realistic problem faced by almost all commune tax officials.

This is only one aspect.

In this era, tax payment is not like in later generations, where a company sends a financial officer to the tax bureau to file taxes, but implements the method of "collecting taxes door-to-door with invoices."

This is the root of the tax officials' misery.

Think about the communication at that time?

Basically relying on shouting.

Think about the transportation at that time?

Basically relying on walking.

When tax officials go to the countryside to collect taxes, it is best to call the production team first. When the leaders of the production team receive the call, and they hear that they are coming to collect taxes?

Needless to say, nine out of ten will run away.

When the tax official runs over diligently, he sees that there is no one!

Surprise, surprise, unexpected?!

Come again next time?

I can go to your sister, who wants to walk for a few hours!

Especially in mountainous areas, it takes a day or even two days to run once, so what should I do?

This is not even the worst of it.

Even more outrageous is that not every commune has a tax office!

Take Gufeng County as an example. The entire Gufeng County, with more than a dozen communes under it, has only two tax offices in the entire county, one in Chengguan Town, which is the county seat of Gufeng County, and the other in Nanhu Commune.

The Nanhu Commune Tax Office is responsible for the entire tax collection work of nearly ten communes in the west of Gufeng County!

Take the slaughter tax as an example. Killing a pig can only collect two cents. The current regulation is "tax first, then slaughter." Even in the marginal commune dozens of kilometers away, if people want to kill a pig, the tax official has to run over diligently, just for the two cents.

Back then, Anquan worked so hard for several years and solved the problem fairly well before he was valued by the old director and got the quota for sending resident village cadres, with a status roughly equivalent to the deputy director.

Zhang Wenliang unrighteously revealed Anquan's old secrets, "I still remember when Lao An first came to the Lu Family Bay to collect taxes. At that time, each team had to distribute dividends, and they didn't want to pay attention to him, after all, paying dozens of yuan in taxes would mean that the team members would get a few cents less.

It wasn't like it is now, not to mention a few cents, even hundreds of yuan, people wouldn't feel so bad. So, when they saw the tax collector coming, they didn't give him a good look.

Privately, we also said that he was an ancient tax official. We had already paid the public grain, but he still had to come to collect taxes, and it was still something like slaughter tax and livestock transaction tax. There was nothing so outrageous."

Secretary Yang raised his glass and chuckled, "Xiao An is a good person, no matter how others look at him coldly, he doesn't get angry."

Chen Fan was very curious, "Then how did he break the situation?"

Xiao Liewen had almost finished eating, picked up his dry tobacco pipe and lit it, biting the mouthpiece and smiling, "How else can he break the situation? By grinding."

Spitting out smoke, he continued, "Doing grass-roots work is nothing more than 'three gets'."

As he spoke, he raised his fingers, "Speak get, run get, hungry get."

Chen Fan's eyes turned slightly, and he said thoughtfully, "Speak get, I can guess. Since the common people can't understand tax collection, you have to patiently explain it to them. How you speak also has to be particular. You can't make others annoyed, but you have to be able to understand and accept it. You can't do it without a good mouth."

Xiao Liewen nodded and looked at him with a smile, "Then you talk about run get."

Chen Fan chuckled, "They don't have cars or motorcycles, at most they ride a bicycle, but they have to run so many communes, so they have to be able to run."

After a pause, he said with a smile, "But what about hungry get? Could it be that you can't eat on the road?"

Zhang Wenliang immediately said, "You haven't done this kind of work, or even any heavy work that requires physical strength. If you have, you will know that whether it's rushing or working hard, you can't eat if you're too tired."

Before he could finish speaking, Chen Fan suddenly nodded, "It's not convenient to eat, and you don't have an appetite, so even if you're hungry, you simply endure it."

Secretary Yang added from the side, "Besides this reason, generally speaking, there are regulations for cadres going to the countryside, not allowing them to take a needle or thread from the common people. What's more, tax officials are not popular. Some production teams, in order to make them leave, simply don't arrange meals for them, and if they don't have enough dry food, they can only go hungry."

Xiao Lie Wen, puffing on his pipe, chuckled, "Xiao An encountered almost every possible difficulty during his first tax collection. The second year, he learned his lesson and came to discuss things with Little Yang from your Team 6 before the tax season even started.

He had been an educated youth in this village and was familiar with Little Yang's family. He helped them with delivering public grain and taking pigs to the food station. After all, he was a cadre from the commune and knew people in various departments, which saved a lot of trouble.

Later, through Little Yang, he connected with other teams. He spent about ten days helping each team handle the delivery of public grain and pigs.

Frankly speaking, we common folk are quite practical. Our hearts are made of flesh. If you treat me well, I certainly won't make things difficult for you.

From then on, we prepared the taxes we needed to pay in advance. Take the slaughter tax, for example..."

He suddenly turned to look at Chen Fan, grinning, "Have you ever paid the slaughter tax?"

Chen Fan blinked and shook his head, saying, "Never."

It was strange. He had slaughtered several pigs at home, but no one had come to collect taxes from him?

Moreover, the cooked food factory slaughtered so many chickens, ducks, and geese every day. What about their taxes?

Xiao Lie Wen smiled and said, "No one is collecting taxes from you because we reduce the number of assigned pigs after you buy the piglets at the beginning of the year. The remaining pigs are raised until the end of the year. As long as they survive, you go to Xiao An to pay the tax and get the tax certificate before slaughtering them, then you can slaughter them as you please."

Chen Fan opened his mouth slightly, surprised that such a thing existed.

It seemed that even after two years here, he didn't know everything.

Ye Shubao finished the last bite of his meal, put down his bowl and chopsticks, wiped his mouth, and joined the conversation, "Xiao An's greatest strength is his flexibility. Some people in the past were just inflexible and insisted on following the regulations to the letter, annoying everyone to death.

Take the slaughter tax, for example. The rule is to tax before slaughtering. What, would I be fined if I slaughtered first and then paid the tax?

Xiao An doesn't care about that and doesn't make things difficult for people. He speaks kindly. After you've already slaughtered a pig, would you be shortchanging him by two cents?!"

Chen Fan looked around at everyone, pondered for two seconds, and asked, "What about the cooked food factory?"

As soon as he said this, Secretary Yang immediately smiled, "Of course, that's considered a sideline company. When we discussed this issue the day before yesterday, Secretary Qian made it clear that we had already separated Lujiawan's agricultural production and all sideline companies in terms of procedures.

And each sideline is relatively independent. Animal husbandry has nothing to do with the cooked food factory, and it's just a supplier to the food factory. Even transportation and the sales department are separate, with clear accounts, which can avoid taxes..."

Chen Fan was feeling pleased with his foresight, after all, he had made the suggestion.

Then he heard "tax evasion"? He almost choked on his smoke.

Fortunately, Team Leader Zhang immediately said from the side, "Not tax evasion, tax avoidance."

Then he explained to Chen Fan, "Secretary Qian said that according to regulations, all our sideline companies have to pay taxes, and there are two types. One is the unified industrial and commercial tax, and the other is income tax.

The more you earn, the higher the percentage they take for income tax.

If we were to collect taxes based on the income of one company, it would be a lot of money. But by dispersing it and distributing the income to each company, and then calculating the tax, we can save tens of thousands, or even millions."

This whole year, Lujiawan not only had favorable weather and a bumper harvest in agriculture, but the sideline companies also thrived. In addition to the foundation laid by Chen Fan, Zhang Wenliang also led people to double the number of cooked food stores and expanded several major clients, covering the entire Yunhu area, especially all the passenger terminals on both sides of the Yangtze River within the Yunhu area.

So this year, Lujiawan's total sideline business revenue exceeded 20 million, 70% of which came from terminal stores, showing how much money the tourism industry can attract.

Huh?

Cough, cough, of course, this is just gross income. After deducting costs and profits for the members, teams, and other production teams, the most that can fall into the hands of the brigade headquarters is about 20-30%, around 5-6 million.

In short, Chen Fan understood what Team Leader Zhang meant, "If it's a progressive tax rate, we can indeed pay much less tax."

Finally, he asked the most critical question, "We agreed to move the sideline companies over there, didn't they offer anything in return?"

"They did, they did."

Secretary Yang smiled from ear to ear, "Secretary Qian said, as long as we are willing to move, we won't collect income tax this year."

Team Leader Zhang, "The unified industrial and commercial tax isn't much money, we'll just pay it. Income tax is the big one. I had Li Accountant calculate it, and we can save more than two million by not paying it."

Chen Fan couldn't help but be a little stunned. The total income was only five or six million, and the income tax was more than two million. This progressive tax rate was really ruthless.

Continuing the previous topic, Secretary Yang said, "In addition to waiving the income tax this year, it will be waived for another two years after we move, and then it will be reduced by half for the next three years. Adding it all up, that's amazing."

Seeing them smiling, Chen Fan also smiled silently.

By next year, community and team enterprises in various places will spring up like mushrooms after rain. Even without the preferential policies given by Secretary Qian and the others, tax cuts or even tax exemptions will be the general trend in the next few years.

But for now, this alone is enough to show the commune's sincerity. As for what to do when the general trend comes?

Of course, follow the trend and continue to reduce or exempt taxes.

In general, the first half of the 1980s was still the world of collective enterprises. It was not until the middle period that private companies began to emerge and flourish.

As for the specific policies, they changed every year, or even several times a year.

Anyway, Chen Fan didn't plan to get involved in this area too early. He would lie low for a few years first.

Seeing the smile on Chen Fan's face, Team Leader Zhang knew that he was satisfied with this policy, so he continued, "In addition to this, the commune also promised to submit an application to the county commercial bureau through formal channels to raise raw materials and production equipment for us, so the food factory and clothing factory have another way to go."

The most important thing is these few points, as for other aspects, they are not important.

It's just providing support for the industrial zone and jointly building a building for the guest house and restaurant, as well as moving the supply and marketing cooperative's store and clinic over there.

This point is similar to the literary and artistic new village in the provincial capital.

After all, according to the plan, when this industrial park is completed, there may be hundreds or even thousands of workers working in it. This is the largest enterprise group in Nanhug Commune, or even Gufeng County, besides Chengguan Town.

In addition, for the sake of the "first righteousness" honor, Secretary Qian and the others naturally gave whatever they had, just to support the facade.