According to the Premier Li Keqiang: China is forcing macro implementation policies to keep the employment and business stable.
Li made this comment while delivering a government report at the opening meeting of the 3rd session of the 13th National People’s Congress (NPC)
According to Premier Li to ensure the employment and people’s well-being, China must stay confidence in over 100 million market companies and should do everything to help companies, particularly micro, small and medium businesses and self-employed individuals to get through this difficult time.
Premier Li also said China will be cutting 500 billion yuan in taxes and fees, that is pointed out that the government will rapidly implement the current policies in conjunction with institutional arrangements to create a better enabling environment and support market companies to overcome problems and achieve development.
According to the premier Li: Policies that are due to expire by June will get extended until end of the year. That will include the following: Exempting micro, small and medium businesses from contributions to basic old-age insurance, unemployment insurance and work injury compensation insurance schemes; reducing or cancelling VAT for small-scale taxpayers; exempting VAT on services such as public transportation, restaurants and hotels, tourism and entertainment and culture and sports and it will reduce or cut civil aviation development fund and ort development fees.
The government calculations expects that the measurements will save companies an additional 2.5 trillion yuan until end of the year.
In order to reach that businesses should sustain their development and to ensure success for the future, all fees and taxes reduction policies must be fully implemented for the businesses. The Policy is also reducing electricity prices for general industrial and commercial businesses by 5% will be extended until end of the year. The rates of broadband and dedicated internet access service will be reduced by approximately 15%. Rent for state-owned will be reduced or exempted, and all other types of property oweners are encouraged to reduce also, and if they help the businesses to do so the government will support them doing so.