China will continue to relieve pressure on enterprises through tax and fee reductions, Liu Kun, the country’s finance minister said at a press conference during the second session of the 13th National People’s Congress in Beijing on Thursday.
As the 2019 government report said, this year there will be tax and social insurance charge reductions worth almost two trillion yuan (298 billion U.S. dollars) for enterprises, Liu said, noting the reduction is the top priority of China’s fiscal policies for 2019.
To carry out the reduction plan, China launched several policies at the beginning of this year to adjust standards for small and micro enterprises, a measure described as “a major move” by Liu Wei, deputy minister of finance at the press conference.
New standards to define small and micro enterprises have been raised to holdings of 50 million yuan in general assets, up from a previous 30 million yuan for industrial enterprises and 10 million yuan for others, Liu said.
The new higher standard indicates more enterprises will be labeled as small and micro businesses, entitling them to more preferential tax policies.
The government also raises the thresholds for enterprises to different extents varied on revenue, and all these measures entered effect from January 1, Liu Wei said.
Other supportive measures include 10 billion yuan (1.49 billion U.S. dollars) allocated for loan discounts to startups and lower loan application conditions, he said.
Liu also said at least 30 percent of government purchase orders are reserved for medium and small enterprises to encourage their development.
Both officials stressed at the press conference that these measures are designed to enable enterprises to gain tangible and concrete support, and also to offer them a favorable policy environment for them to face challenges with better development.