Tax, fee cuts for high-tech development surpass 2t yuan

In the first three quarters of 2024, China's major policies supporting scientific and technological innovation and the development of the manufacturing sector reduced taxes and fees, yielding refunds of 2.087 trillion yuan ($289.73 billion), the Xinhua News Agency reported, citing data released by the State Taxation Administration.

Tax reductions and rebates for policies supporting increased investment in science and technology, the transfer of achievements, and the introduction and training of talent totaled 893.7 billion yuan. A total of 810.7 billion yuan was realized in corresponding cuts and refunds for policies backing up the high-quality development of the manufacturing industry.

Policies supporting the cultivation and development of high-tech enterprises and emerging industries reduced taxes by about 302.5 billion yuan, while about 80 billion yuan was saved in tax cuts for measures supporting equipment updates and technical transformation.

The continuously expanding scale of tax reductions, rebates, and fee reductions has significantly reduced enterprises' financial burdens and stimulated the vitality of micro-sized entities, which plays an important role in stabilizing economic development, Zhou Maohua, an economist at China Everbright Bank, told the Global Times.

Zhou noted that actively optimizing the structure of fiscal revenues and expenditures while strengthening financial support based on the economic situation and enterprises' development issues has achieved noticeable results in promoting the innovative development of domestic enterprises and economic restructuring.

Zhou said the annual scale of tax cuts, fee reductions, and refunds is likely to surpass last year's scale based on the figure in the first three quarters.

China will support capable private enterprises in leading national initiatives to make breakthroughs in major technologies and provide private enterprises with greater access to major national scientific research infrastructure. The country will also support basic research in diversified fields and guide eligible private enterprises to conduct high-risk, high-reward basic research, an official of the National Development and Reform Commission said in October, according to another Xinhua report.