Chinese Government Offers Financial Relief in SARS Fight

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Last updated at: (Beijing Time) Wednesday, May 21, 2003

Chinese Government Offers Financial Relief in SARS Fight

The Chinese government will continue to offer financial relief to sectors affected by SARS to ensure economic growth, Minister of Finance Jin Renqing said Tuesday.

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The Chinese government will continue to offer financial relief to sectors affected by SARS to ensure economic growth, Minister of Finance Jin Renqing said Tuesday.

The Ministry of Finance had stipulated four preferential policies, reducing and suspending some administrative levies, governmental funds and taxes, said Jin in a written interview with Xinhua.

Meanwhile, the ministry is offering interest subsidies for short-term loans to the air transport and tourism sectors that are seriously affected by SARS.

Jin said these policies would directly reduce the operating costs of SARS-hit sectors, and help some enterprises overcome economic difficulties.

The government would reduce the rate of the civil aviation infrastructure construction fund for airlines and would cut leviesfor road maintenance and transportation management fees on road transportation sectors and taxi operators.

The reduced taxes and levies were estimated to account for two to 16 percent of the total revenue of those sectors, Jin said.

Moreover, the government's interest subsidies of 100 million yuan (12 million US dollars) to the airlines and tourism enterprises would effectively ease the difficulty in the fund flow for the time being.

Although the policies would have an effect on the fiscal balance of the country, they were the price that must be paid to ensure the healthy growth of the economy, Jin said.

The government would get more revenue through boosting economic growth, he added.

Jin said the preferential policies would be effective from late May to the end of September.

Financial departments at all levels would closely watch the impact of SARS on the financial situation and try to minimize economic losses, Jin added.

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