Burmese businessman Mao Zuzheng has been in China for more than four years, and runs a furniture store in Dehong prefecture, Yunnan province. In 2019, the value-added tax collection threshold for small-scale taxpayers was increased from 30,000 yuan ($4,346.69) to 100,000 yuan in monthly sales. A large number of private businesses have benefited from the policy, and Mao Zuzheng's furniture store was one of them.
In 2019, Yunnan's foreign trade volume exceeded 200 billion yuan for the first time, an increase of 17.9 percent over last year, and its increase in imports and exports ranked third in the country. The implementation of the tax and fee cuts policy and the improving business environment have injected further momentum into Yunnan's border trade economy.
In 2019, China introduced unprecedented tax cuts and fee reductions. These reductions exceeded two trillion yuan (about $287 billion), accounting for more than two percent of GDP and contributing about 0.8 percentage points of GDP growth.
Consequently, the business environment has significantly improved, with the benefits of the tax and fee cuts apparent in manufacturing and in medium- and small-sized firms. The inclusive tax reduction for small and micro enterprises (SMEs) stood at about 250 billion yuan.
The policy not only injects vitality into SMEs for their development, but also contributes to the country’s poverty alleviation campaign. But how does it achieve these goals? And what do business owners have to say about it?
This six-part series of stories themed around “tax reduction and fee cut in action” will tell you the answers. Find the previous episodes below and stay tuned for more.