The private sector of the Chinese economy significantly benefited from the government's tax and administrative fee cuts in the first 11 months of this year, according to the latest official data released by the State Taxation Administration.
From January to November, the newly implemented tax refunds for the private sector of the economy as well as new cuts and deferrals of tax and administrative fee payments amounted to 1 trillion yuan (about 137 billion U.S. dollars), accounting for 71.3 percent of the total amount of the new tax and fee reductions and tax rebates for all sectors of the economy in the country, according to the data.
Since the beginning of this year, a series of preferential tax policies have kept playing a role in stimulating the vigor and vitality of the private sector of the economy.
In Hangzhou, capital city of east China's Zhejiang Province, a company that uses special and sophisticated technologies to produce novel and unique products has enjoyed a tax reduction of 20 million yuan (2.74 million U.S. dollars) so far this year.
"We've equipped our production line with a 'digital brain', which improves the production efficiency by 30 percent. So far this year, our sales have already topped 300 million yuan (about 41.1 million U.S. dollars), an increase of more than 10 percent over the same period of last year," said Zheng Lei, financial administrator of the company.
Official data show that in the first 11 months of this year, private enterprises nationwide enjoyed tax cuts of 699.1 billion yuan (95.78 billion U.S. dollars) through two preferential tax policies to support scientific and technological innovation, namely additional deductions for research and development expenses and value-added tax (VAT) deductions for advanced manufacturing enterprises, and a total of 269.1 billion yuan (36.87 billion U.S. dollars) of VAT credit refunds.
China's private sector significantly benefits from tax, fee cuts in January-November
