Shanghai announces further reduction in taxes and administrative fees

Shanghai is cutting taxes and administrative fees to push market vitality and achieve a steady and healthy economic development, government officials said on Monday.

The city is expected to slash more than 180 billion yuan (US$26.18 billion) in tax and administrative fees this year.

Shanghai has cut taxes and fees by over 300 billion yuan between 2016 to 2018. Last year, it cut fees by about 56 billion yuan. The city government said a series of measures will be implemented this year to optimize the business environment, reduce the burden on enterprises, stimulate market vitality, ensure steady economic growth and boost employment.

The city plans to implement 15 measures to cut the operating costs of enterprises, including tax cuts for micro and small businesses, labor costs, price cuts on gasoline, diesel, electricity and natural gas, among other measures.

Chen Yin, executive vice mayor of Shanghai, said that the purpose of tax and fee reduction is to help enterprises reduce costs and better compete in the market. Chen said that enterprises in Shanghai have been growing and expanding in recent years, thanks to these measures.

Chen Shiyan, deputy director of Shanghai Development and Reform Commission, said the city was implementing a larger scale of tax and fee reduction this year. The efforts made this year were higher than in previous years, Chen Shiyan said.

Government officials also evaluated the results and achievements following the tax and fee cuts, and found enterprises feel themselves under less stress in the fields of taxes, financing, labor and logistics. Chen Shiyan said that the commission will work with various government departments to set up a tracking and evaluation mechanism to obtain enterprises' feedback.