East China’s Jiangsu province has unveiled 42 pro-active policies to continue to increase fiscal and tax support for enterprises, and reduce the burden of enterprises for the improvement of economic operation.
The government's financial input is the most direct help to solve the urgent needs of the market players and enhance their development confidence.
The 42 policies issued by Jiangsu will help market entities to tide over their difficulties and speed up recovery and development. For taxpayers in accommodation and catering, sports and entertainment, transportation, tourism, retail, warehousing and small-scale VAT taxpayers, the real estate tax and urban land use tax in the first half of 2023 will be temporarily exempted. This preferential policy was introduced in 2020 to support industries and small-scale taxpayers seriously affected by the COVID-19. Last year, enterprises across the province were exempted from 8.57 billion yuan, benefiting 240 thousand taxpayers.
Huang Zhongmao, Director of Tax Administration Division of Jiangsu Provincial Department of Finance said, "This policy expired at the end of last year after a three-year implementation. Our questionnaire shows that enterprises hope to extend the implementation period appropriately. To this end, we decided to extend the implementation period of the policy for another half a year, taking into account the changing trend of the current economic operation and the policy demands of enterprises. It is preliminarily estimated that the tax reduction for the market entities will exceed 4 billion yuan."
Preferential policies also accelerate the cultivation of new drivers of the real economy. In 2022, more than 30 thousand industrial enterprises in the province launched intelligent transformation and digital transformation, and more than 10 thousand enterprises have completed the transformation task.
Yang Chen, Director of Industry and Trade Development Division of Jiangsu Provincial Department of Finance said, "We will implement the requirements of positive fiscal policy and efficiency, use various policy tools and allocate more than 200 million yuan for free diagnosis of enterprises. In addition, we will actively support the high-end transformation of industrial Internet demonstration benchmarking project, so as to accelerate the completion of the task of intelligent transformation of digital transformation."
