Cuts to taxes, fees will promote growth

Source: Xinhua | 2018-11-23

SHANGHAI is cutting taxes and administrative fees in line with the central authority’s fiscal policies.

To respond to complex domestic and foreign economic situations and further support the healthy and sustainable development of the economy, the Central Committee continues to implement more proactive fiscal policies for tax reduction, aiming to newly cut about 1.3 trillion yuan (US$187.46 billion) in tax and administrative fees in 2018.

Shanghai Mayor Ying Yong stressed: “We should lay more emphasize on the optimization of the business environment and make further efforts on tax reduction ... to support the development of the economy and improve enterprises’ sense of gain.”

The city’s financial and taxation departments will actively promote the implementation of tax policies, planning to achieve reductions in tax and administrative fees exceeding 50 billion yuan.

The city has offered additional preferential tax policies for research and development expenses as well as to technology enterprises, to boost companies’ investments and stimulate companies to further promote R&D and innovation.

Also, Shanghai is accelerating the reform and innovation of individual income tax.

Since October 1, 2018, the city has raised the personal income tax threshold to 5,000 yuan per month — 60,000 yuan a year — from the previous 3,500 yuan.