Yao Jiakang, the legal representative of Yunfeng Pipeline Industry Co Ltd in Jiashan County, East China’s Zhejiang province, had planned to expand his business in Shanghai and set up a new company. Recently, he discovered how convenient taxation has become due to the integration of the Yangtze River Delta.
He successfully applied for a business license in his hometown Jiashan and made an appointment for the official seal. Two days later, Yao went to the administrative examination and approval service hall of Shanghai Qingpu district. From tax information entry, tax control equipment issuance to invoice purchase, it took just 20 minutes to complete all the tax-related processes.
In order to accelerate the integrated development of the Yangtze River Delta, Shanghai Qingpu district, Zhejiang Jiashan County, and Jiangsu Wujiang district played to their strengths and explored means of integrating market access for businesses based on data sharing, strengthened cooperation, and new institutional mechanisms. Their concerted efforts have laid a solid foundation for the realization of trans-regional administration.
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.