Fewer taxes, more subsidies for companies affected by the virus
Shanghai has pledged to ease the burden on COVID-hit businesses with a list of social protection policies, taxes and subsidies, local authorities announced on Sunday.
Struggling industries like catering, retail, tourism, civil aviation and other transportation, as well as small and medium-sized businesses that have been hardest hit by the pandemic, may defer their premium payments social insurance, their housing fund and their taxes, said Wu Qing, vice president. mayor of the city during an online press conference.
In addition to rent reductions, eligible businesses are exempt from property tax and urban land use tax, and non-resident users will receive a financial subsidy of 10% for water, electricity and gas charges. natural payable for three months. Garbage disposal costs for three months are free.
The VAT, or value-added tax, refund policy will be applied more widely, Wu said.
And companies in sectors such as catering, retail, tourism, transport as well as leisure and accommodation will benefit from one-off subsidies to stabilize jobs. Qualified employers will receive one-time grants for new workers.
More targeted financial measures will be unveiled to bail out companies and help them resume production, said Hua Yuan, deputy secretary general of the Shanghai government and director of the Shanghai Development and Reform Commission at the press conference. .
Efforts will be made to support smooth loan renewals and stabilize business funding expectations. The city will strive to smoothly renew loans of 100 billion yuan ($14.8 billion) to businesses, especially small businesses, by the end of this year.
Banking institutions will be encouraged to increase their credit supply for businesses and help get their business back on track, Hua said.
Shanghai banks are providing special relief loans with preferential interest rates for key enterprises in the field of pandemic prevention and small private enterprises.
In addition, the City’s economic recovery plan also proposes specific financial measures for foreign trade, transport and logistics companies, as well as specialized high-tech companies.