China’s top government authority says it will launch more policies to help small businesses in the country to weather uncertainty on global markets, as well as the impact of renewed Covid lockdowns at home.
At a regular meeting held on 5 May the State Council said that it would “arrange measures for further relief for micro, small and medium-sized enterprises and individual industrial and commercial registrants”.
“[This] will ensure that market entities stabilise employment,” said the meeting.
“Micro, small and medium-sized enterprises are an important foundation for stabilising the economy, and a vigorous support for stabilising employment.”
The State Council said that it would “make the implementation as soon as possible of policies and measures such as enterprise tax reductions the top priority,” including the full payment of outstanding VAT credits to micro and small-enterprises, as well as payments in advance of tax rebates to qualified medium-sized enterprises.
China’s Ministry of Finance (MOF) estimates that full year tax rebates and reductions will total around 2.5 trillion yuan, following the launch of over 20 new tax support policies since the start of 2022.
MOF estimates that in the month of April alone it processed 625.6 billion yuan in tax rebates for micro-enterprises in China.