China's new tax and fee cuts total 1.88 trillion yuan from January to August
09:14:00, Sep. 30, 2020
In the first eight months, about 92 percent of the 50 million small-scale taxpayers with monthly sales below 100,000 yuan were exempt from value added tax (VAT).
China's new tax and fee cuts totaled 1.88 trillion yuan (about $275 billion) in the January to August period, greatly reducing the burden on enterprises, the country's taxation authority said on Tuesday.
The new cuts include two parts: the new tax and fee cuts of 1,171 billion yuan introduced this year to support epidemic prevention and control and economic development, and also the newly added tax and fee reductions of 706.2 billion yuan based on last year's tax policy, said Cai Zili, an official with the State Taxation Administration.
In the first eight months, about 92 percent of the 50 million small-scale taxpayers with monthly sales below 100,000 yuan were exempt from value added tax (VAT), said Cai.
The market entities also showed greater vitality. The new market entities that went to the taxation department to handle tax-related matters continued to rise in July and August, increasing by 15.9 percent and 21.2 percent year on year respectively.
In addition, the tax cut policy gave a strong boost to employment as companies reduced their insurance and labor costs.
About 89.4 percent of companies surveyed predicted that the business operation to be "stable" or "improved" in the fourth quarter, up 4.7 percentage points compared to the prediction in the third quarter.
Companies also have more capital to do research and increase investment in hi-tech equipment and services. From January to August, R&D expenditures of major companies rose 10 percent year on year.