Taxes, incentive fees a boost for the economy

BEIJING: China has stepped up its tax and tariff incentives and business support policies, a move that not only offered “timely rain” to financially struggling companies but also served as a boost to the economy.

Official data from the state tax administration showed that China’s tax refunds and tax and fee reductions and deferrals exceeded 3.4 trillion yuan ($2.2 trillion). RM) to September 20.

The total consists of 2.21 trillion yuan (RM1.4 trillion) in value added tax credits that were refunded to taxpayers, 591.6 billion yuan (RM386 billion) in tax reductions. taxes and charges and 632.6 billion yuan (RM412 billion) of deferred taxes and charges. Payments.

The combined tax and tariff incentives have been key to bailing out struggling businesses. A waste management company based in Jia’an, east China’s Jiangxi province, for example, had posted negative profit margins before May, according to the company’s chief financial officer, Zhang Leshan.

However, after receiving a 10.48 million yuan (RM6.8 million) tax refund in May and a 160,500 yuan (RM104,597) exemption which was refunded to his account, the monthly profits of the company rebounded into positive territory and reached 2.86 million yuan. (RM1.86mil).

Zhang also said the company’s monthly operating costs fell 5.3%. “It is estimated that the company would see a 25% annual increase in trading revenue over the full year.

“We used the money to buy soybean pulp, brown rice and other raw materials for broiler feed. After three months, the chickens were sold at a good price and the farmers reaped a harvest,” said Sang Shujun, the company’s legal representative.

A National Bureau of Statistics (NBS) survey showed that 90% of businesses that have received tax refunds since the policy was implemented felt their cash flow had improved.

In addition to inclusive tax and tariff incentives, an executive meeting of China’s State Council last week decided to temporarily defer the payment of certain government levies and deposits to further ease the burden on market entities, in especially micro, small and medium enterprises. , self-employed households and manufacturing companies. – Chinese Daily/ANN

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