Â
>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<
Â
Â
China’s top economic planner on Tuesday released 22 measures on lowering costs for firms this year, including exempting and reducing value-added tax for some firms and lowering loan interest rates.
China will also increase loans to small companies and guide financial institutions to increase their medium- and long-term loan issuance for the manufacturing sector, according to a statement by the National Development and Reform Commission and other government departments.
By the end of this year, small-scale taxpayers with monthly sales below 100,000 yuan will be exempted from value-added tax (VAT); the taxable sales income of for small-scale taxpayers subject to the 3% levy rate will be levied at a reduced VAT rate of 1%; and for taxpayers in the production and living service industries, the 5% and 10% VAT deduction will be implemented respectively, according to the notice.
The country will implement supportive policies in tax and the first set insurance compensation to promote the transformation and upgrading of traditional industries and the development of strategic emerging industries, said the NDRC.
It will introduce targeted measures to cut tax and fees for the fields including technology innovation and key industrial chains and for qualified companies, the proportion of pre-tax deductible R&D expenses will be increased to 100% from 75% which will become a long-term institutional arrangement, it said.
As part of the efforts to cut companies’ cost, China will ensure supply of energy and important raw materials and keep prices stable and will continue to implement zero tariff on coal imports, it said.
China will strengthen the ability to ensure domestic production and supply of resources, strengthen domestic mining of important energy and mineral resources and step up storage and production, improve the policy for mining rights transfer, it said.