As of Nov. 10, Beijing has made tax and fee cuts and postponed relevant payments of more than 190 billion yuan ($26.5 billion) this year, including over 100 billion yuan of value-added tax (VAT) credit refunds. The move has further stabilized the economy and boosted the confidence of market entities.
As the most direct, effective and equitable policy measure to ease business difficulties, tax and fee cuts have provided substantial financial support, especially for energy suppliers and pharmaceutical companies, to ensure production and enhance innovation capacity.
According to local tax authorities, Beijing has refunded a total of 106.3 billion yuan of VAT credit as of Nov. 10. The manufacturing industry and the sci-tech service sector are the biggest beneficiaries, receiving 14.1 and 10.2 billion yuan, respectively, and accounting for 19.4% and 9.6% of the total amount of refunds.
To stabilize market entities and boost employment, Beijing has rolled out a series of preferential policies on temporary deferment of social-insurance premium payments for catering, retail sales, and road and rail transport sectors. It also uses big data measures to offer targeted assistance and provides one-on-one service channels between tax authorities and companies in need.
Official data shows that, as of Nov. 10, Beijing’s tax authorities have deferred a total of 18.9 billion yuan in tax and fee payments, and tax and fee reductions worth 6.8 billion yuan have been newly introduced across the city. Specifically, reducing or canceling VAT for small-scale taxpayers has brought tangible benefits for self-employed individuals and micro- and small-sized enterprises across the city.
