China takes steps to cut corporate costs

BEIJING, June 13 -- China on Tuesday announced an array of moves to reduce costs for businesses.

Sectors dedicated to technological innovation or key industrial chains will enjoy tailor-made tax and fee cutting measures, with the current favorable tax policies being further optimized, said a circular issued by four state organs, including the National Development and Reform Commission.

By the end of this year, small-scale taxpayers with monthly sales of less than 100,000 yuan (about 13,986 U.S. dollars) will be exempted from value-added tax, the circular said.

While seeking to lower loan interest rates, the country will also continue to increase loans to small and micro firms, according to the circular.

To alleviate manpower burdens on firms, the existing policies of lowering the premium rates for unemployment insurance and work-related injury insurance will be extended to the end of 2024.

The country will also retain a zero-tariff policy toward coal imports, and make continued efforts to reduce institutional transaction costs and logistics costs, the circular added.

Source: Xinhua