Less tax fees, more subsidies for virus-affected companies
Shanghai has pledged to ease the burden on COVID-affected enterprises with a slate of social welfare, tax and subsidies bailout policies, local authorities announced on Sunday.
Struggling industries like catering, retail, tourism, civil aviation and other transportation, as well as small and medium-sized business which have been hit most by the pandemic can defer their social insurance premium payments, housing fund and taxes, said Wu Qing, vice mayor of the city during an online press conference.
In addition to rent reductions, eligible enterprises are exempted from property tax and urban land use tax, and non-resident users will be given a 10-percent financial subsidy for water, electricity and natural gas fees payable for three months. Garbage disposal fees for three months are free of charge.
VAT, or value-added tax, rebates policy will be applied more broadly, Wu said.
And enterprises in sectors such as catering, retail, tourism, transportation as well as recreation and accommodation will enjoy one-time subsidies to stabilize jobs. Qualified employers will be given one-time subsidies for new workers.
More targeted financial measures will be unveiled to bail enterprises out, and help them resume production, Hua Yuan, deputy secretary general of Shanghai government and director of Shanghai Development and Reform Commission told the press conference.
Efforts will be made to promote seamless loan renewals and stabilize companies' financing expectations. The city will strive to provide seamless renewal of loans of 100 billion yuan (US$14.8 billion) to firms, especially small enterprises, by the end of this year.
Banking institutions will be encouraged to increase their credit supply for enterprises and help bring their business back on track, Hua said.
Banks in Shanghai are setting up special relief loans with preferential interest rates for key firms in pandemic prevention area and small, private business.
In addition, the city's economic revitalization plan also puts forward special financial measures for foreign trade, transportation and logistics firms, as well as specialized high-tech companies.
