China cuts costs for enterprises to help tide over pandemic

BEIJING (Xinhua) – Chinese authorities have issued a circular to further cut costs for enterprises to help them tide over the COVID-19 pandemic.

The average costs of broadband for enterprises will fall by 15 per cent this year, said the circular jointly issued by four government departments including the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance and the People’s Bank of China.

The exemption policy for value-added tax will be extended to the end of this year, involving the sectors of public transportation, catering and accommodation, tourism and entertainment, culture and sports services, the circular said.

Small businesses are allowed to postpone their income tax payments until next year and illegal charges on enterprises will be eliminated, it said.

Micro, small and medium-sized enterprises will be exempted from the payment of basic pension, unemployment and work-related injury insurance until the end of the year, the circular said.

Workers at a telecommunications company in Hejian, North China’s Hebei province. PHOTO: XINHUA