China's State Council has announced plans to implement more fiscal and taxation policies, to help small and medium-sized enterprises tackle financing problems.
These include preferential tax policies to promote development, through raising the value-added tax and sales tax thresholds for small and micro-enterprises, and reducing enterprise income tax until 2015.
The Central Government also plans to increase investments in SMEs by over 1 billion yuan ($159 million) to 14.1 billion ($2.2 billion). And establish a development fund, in which 15 billion yuan ($2.4 billion) will be injected in 5 years, with 3 billion ($447 million) set for this year.
The State Council emphasized the need to realize existing policies to boost financing to small and micro-businesses, ensuring a higher growth rate in loans compared with the previous year. And further to stimulate development by relaxing regulations on private, foreign and international organization's participation in small financial institutions. (CNTV.cn April 27, 2012) |