China steps up tax, fee reduction to support businesses

BEIJING, Sept. 7 (Xinhua) -- China has ramped up fiscal policies to support the development of businesses and bolster the real economy this year, official data showed.

Newly implemented tax refunds, as well as tax and fee cuts and deferrals, amounted to 1.05 trillion yuan (about 145.86 billion U.S. dollars) in the first seven months of 2023, Luo Tianshu, an official of the State Taxation Administration, told a press conference on Thursday.

An array of favorable measures have been rolled out to help enterprises weather difficulties. Preferential tax policies for micro and small firms and self-employed households have been extended to the end of 2027, and more corporate spending in research and development has become tax-deductible.

Vice-minister of finance Wang Dongwei said at the press conference that technological innovation, the real economy, and micro, small and medium-sized enterprises, in particular, have received strong policy support.

From the exemption of value-added tax for small-scale taxpayers to the expansion of halved individual income tax rate to include more self-employed households, these policies have proven to be targeted and effective, Wang said.

Tax authorities will intensify efforts to better interpretate and promote the favorable tax policies to ensure businesses can genuinely receive the benefits, according to Luo.