Social insurance premium not an extra burden

China has launched several policies in recent years to cut taxes and administrative fees, which have helped ease the burden of enterprises. The reduction of taxes and administrative fees could reduce the enterprises' cost by 1.1 trillion yuan ($160.39 billion) this year, which will enhance the vitality of enterprises and stabilize economic development.

But a joint meeting of five departments, including the State Administration of Taxation on Aug 20 that issued the reform plan for tax collection and advanced the uniform levying of social insurance premiums from Jan 1, 2019, has triggered a public debate on whether the move will increase the financial burden of the enterprises.

Some people assume that the uniform levying of social insurance premium on the enterprises will increase their burden and thus create obstacles to their sustainable development. The issue does deserve attention, but it should not be used to impede the pace of tax collection and management system reform.