Yuntiandu, a 430-meter-long and 6-meter-wide glass bridge hanging between two steep cliffs 300 meters above the ground in Zhangjiajie, Central China's Hunan province, has become a famous tourist destination attracting millions of visitors from home and abroad.
From planning to completion, Luo Siqing’s Grand Canyon Company experienced many difficulties. In recent years, China has rolled out a series of tax and fee reduction policies which benefitted small and micro-sized enterprises and start-ups. The policies have eased the burdens on Luo’s company. The money it saved was used to improve the infrastructure at the scenic spot.
As the 'spillover effect' of the scenic spot became more apparent, a large number of local villagers, who had gone away to work, returned home to start a business. The core scenic spot has directly raised 24 poor villages and 23,000 poor people out of poverty. From Jan-Sept 2019, the city's tourism-related industries reduced taxes by 132 million yuan ($19.13 million), benefiting 43,015 taxpayers.
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.