Taxpayers in Guangdong Province will have one billion yuan (US$120.48 million) more in their pockets after the implementation of ten preferential policies, according to the local taxation administration.
The province in south China published a series of preferential tax policies to support enterprises seriously affected by severe acute respiratory syndrome (SARS) earlier this month.
The preferential policies are designed to reduce or waive taxation on some businesses, including the suspension of value-added tax on individual goods businesses. Service enterprises will be taxed when their monthly sales are above 1,500 yuan, almost double the previous base of 800 yuan.
Meanwhile special privileges have been given to laid-off workers, who now enjoy much higher tax thresholds.
Donations to fight SARS from abroad will be exempted from import value-added tax. The preferential policies also give tax exemptions on donations made by Chinese individuals and units to fight SARS.
Funds invested in researching anti-SARS medicines or goods can be deducted from the taxable value before taxation.
Tax can be deferred for enterprises heavily affected by the outbreak of SARS after the enterprises have applied and been ratified by the provincial taxation administration.
Taxpayers are also encouraged to pay their taxes in different ways, including by mail, telephone and the Internet.
(Xinhua News Agency May 21, 2003)
