East China’s Jiangsu province has made every effort to promote the development of small and medium-sized enterprises by unveiling a slew of proactive fiscal policies.
In the evening hours, a hotpot restaurant located in Huai'an Economic and Technological Development Zone welcomed its busiest time of the day. With the overall recovery of the catering market, the business of this hotpot restaurant is improving month by month. Recently, the government announced that multiple tax and fee preferential policies will continue until the end of 2027, indicating that this small store is expected to further reduce its operating costs.
“We can enjoy a discount of 1% reduction in value-added tax rate for small-scale taxpayers, as well as a half reduction in personal income tax for self-employed businesses. In the first half of the year, more than 30000 yuan was reduced. Now we are very happy that this policy has been clearly extended,” said Zhang Mengya, a front office manager of Huai'an Laocheng Old Hot Pot Store.
Jiangsu spared no effort to ensure the continuity and accuracy of tax and fee policies so as to strengthen support for small and micro enterprises and self-employed businesses.
Local tax departments have actively pushed preferential information and track the implementation effect through technologies such as big data and cloud computing.
In the first half of the year, Jiangsu recorded a total of 96.09 billion yuan in new tax reductions and deferred tax refunds, with small and medium-sized enterprises benefiting from 60.5 billion yuan in tax reductions and deferred tax refunds, accounting for 63% of the total.
“The most common problems faced by small and medium-sized enterprises and self-employed businesses are invoicing and social security payment. Now all they need to do is to scan this code, and the tax department can receive their needs and provide a satisfactory response as soon as possible. In the past month since the launch of this service, we have solved over 70 difficult problems for self-employed businesses and small and micro enterprises,” said Shi Wei, Chief of Tax Service Department of Huai'an City Taxation Bureau.
Jiangsu has invested 20 billion yuan to establish a special loan for small and medium-sized enterprises by providing preferential support such as financial interest discounts and credit loans.
Ouwei Smart City Technology Co., Ltd. is engaged in the research and development and manufacturing of intelligent road lighting products. This year, the company saw a significant increase in orders with its annual sales expected to increase by 35%. However, it is faced with an increasingly tight supply of working capital. Fortunately, a bank assisted them in applying for a special fund loan of 3 million yuan, which solved the urgent need.
“It took us three days to receive the loan funds, which was efficient. Additionally, we enjoyed the government's interest subsidy policy so as to greatly reduced our financial costs,” Ding Guangchun, General Manager of Yangzhou Ouwei Smart City Technology Co., Ltd., said.
“As of the end of July, we have pre-allocated a discount of 73.56 million yuan to support cooperative banks in issuing special loans of 13 billion yuan, benefiting 3144 small and medium-sized enterprises. Manufacturing enterprises accounts for more than 70%,” said Wang Fang, Deputy Director of the Finance Department of Jiangsu Provincial Department of Finance.
Statistics show that from January to July, Jiangsu recorded 1.08 million newly registered business entities, a year-on-year increase of 10% and 712,000 self-employed businesses, a year-on-year increase of 8.4%, demonstrating a vibrant market vitality.
