China releases tax exemption, loan policies to beef up coronavirus containment

The State Council, China's cabinet, on Wednesday released tax exemption and loan policies to strengthen novel coronavirus containment and better meet the demand for medical supplies and life necessities.

As provisional policies beginning from Jan 1, enterprises producing key supplies will be able to get their taxes on facilities payments for expanding production capacity deducted in full on a one-time basis, according to a statement released after a State Council executive meeting chaired by Premier Li Keqiang.

Meanwhile, revenues from transporting key emergency supplies and providing public transportation, life services and express mail services can enjoy value-added tax exemption, said the statement.

The registration fee for drugs and medical equipment for novel coronavirus containment is waived, and support for research and development of the drugs and vaccines will be strengthened.

Civil aviation enterprises will not be charged for the civil aviation development fund, said the statement.

The meeting also called for banks to offer preferential loans at fiscally subsidized interest rates below 1.6 percent for enterprises that produce, transport or sell medical supplies and life necessities.

The meeting urged enhancing supervision and strictly cracking down on illegal acts of defrauding fiscal and credit funds.