Cuts to taxes, fees will promote growth

SHANGHAI is cutting taxes and administrative fees in line with the central authority's fiscal policies.

To respond to complex domestic and foreign economic situations and further support the healthy and sustainable development of the  economy, the Central Committee continues to implement more proactive fiscal policies for tax reduction, aiming to newly cut about 1.3 trillion yuan (US$187.46 billion) in tax and administrative fees in 2018.

The city's Party committee and municipal government attach great importance to new measures to further alleviate burdens on enterprises and optimize the business environment. 

Shanghai Party Secretary Li Qiang  said the city should develop a high level international business environment.

Shanghai Mayor Ying Yong also stressed: "We should lay more emphasize on the optimization of the business environment and make further efforts on tax reduction ... to support the development of the economy and improve enterprises' sense of gain."

The city's financial and taxation departments together with relevant units will actively promote the implementation of tax policies, planning to achieve reductions in tax and administrative fees exceeding 50 billion yuan. 

The city has offered additional preferential tax policies for research and development expenses as well as technology enterprises, to boost companies' investments and stimulate companies to further promote R&D and  innovation.

Also, Shanghai is accelerating the reform and innovation of  individual income tax . Since October 1, 2018, the city has raised the personal income tax threshold to 5,000 yuan (US$771) per month — 60,000 yuan a year — from the previous 3,500 yuan.

In terms of expanding opening-up and encouraging free trade, China has reduced the import tariff rate  several times in recent years, covering various industries such as autos, pharmaceuticals and daily necessities. The overall level of tariffs was cut from 9.8 percent to 7.5 percent.

In order to support the first China International Import Expo, the country  introduced a batch of supporting policies, issuing preferential policies for import tax and also optimizing the export tax rebate policy.

The city has also laid emphasis on offering better services to cut red tape and streamline government administration in terms of taxation, setting up the online platform for tax services which covers over 90 percent of the tax-related processes.

Shanghai's fiscal and taxation departments will continue to implement various tax reduction measures, and put forward timely proposals for cutting taxes and administrative fees, to constantly optimize and improve the business environment that is conducive to the sustainable and robust development of enterprises.