Guizhou province rolls out policies to help manufacturers

Southwest China's Guizhou province recently rolled out plans to relieve and resolve difficulties being faced by local manufacturers in a timely manner.

The plans provide support for producers with 39 measures in seven areas, including fiscal taxes and fees, financial credit and stable supplies and prices.

A value-added tax or VAT reduction and fee reductions that support manufacturing, small and micro enterprises and individual industrial and commercial entities will be extended.

From April 1 to Dec 31, 2022, small-scale VAT taxpayers subject to a 3 percent taxable sales income are being exempt from VAT.

For those pre-paid VAT projects subject to a 3 percent pre-paid rate, pre-paid VAT will be suspended.

Equipment and appliances with a value of more than 5 million yuan ($743,099) purchased by small and medium-sized enterprises in 2022, with a depreciation period of three years, can enjoy a one-time pre-tax deduction.

Micro, small and medium-sized enterprises in the manufacturing industry can continue to enjoy the postponement of paying a number of taxes and fees in the fourth quarter of 2021, while the period of postponement will continue to be extended for four months.

The deduction ratio of R&D expenses for manufacturers and technology-based small and medium-sized enterprises will be increased from 75 percent to 100 percent.

Moreover, the province will guide financial institutions to focus on credit policies and continue to provide financial support to enterprises in industries seriously affected by the COVID-19 Pandemic.

Large State-owned banks will optimize their allocation of economic capital and favor manufacturers, to promote the continued rapid growth of medium and long-term loans to the manufacturing industry.

In addition, the province will promote energy security and supplies and implement the national unified tiered electricity price system for high-energy-consuming industries.

Finally, Guizhou will move to stabilize the supply and price of bulk raw materials, and improve a mechanism for the formation and dynamic adjustment of energy and resource prices.