Shandong to scale up tax, fee cuts

(| Updated : 2022-03-30

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Cargo is loaded and unloaded at the Qianwan container terminal in Qingdao, East China's Shandong province, on Jan 14, 2022. [Photo by Yu Fangping/For China Daily]

Shandong province will implement tax and fee cuts at a greater intensity to vitalize market players this year, local authorities said at a recent news conference.

It will step up policy support for smaller businesses that have been hit hard by the pandemic, grant rewards to demonstration areas utilizing inclusive finance, and support a new array of "little giants" (leading small and medium enterprises that specialize in niche sectors), according to the statement.

"According to preliminary estimates, the new tax rebates will exceed 90 billion yuan ($14.16 billion) this year, which will increase the cash flow for local enterprises, effectively ease their financial pressure and mitigate the impact of COVID-19 on market entities," said Liu Xingyun, director of the Shandong Provincial Department of Finance.

In addition to the tax rebate policy, small, medium and micro enterprises will also enjoy preferential policies for value-added taxes and corporate income taxes.

The province has also emphasized its efforts to assist financial institutions in increasing support for the real economy, especially small and micro businesses, technological innovation, and green development.

It will put more effort into lowering rents and interest rates in order to ensure that relief policies reach the primary level and directly benefit market entities.

To make raising a family easier, the province has included childcare expenses for children under the age of three in the special supplementary deductions for individual income taxes, as well as developed public-interest daycare services.