Shanghai to give $7.9 b in tax cuts to companies
Shanghai is predicted to implement 50 billion yuan ($7.9 billion) in tax cuts this year due to the rolling out of both national and local tax reduction policies, further alleviating the burden of local companies, people.cn reported on May 9.
The policies involves lowering charges of four administrative affairs such as canceling the land use fee for foreign-funded companies that rent work space, reducing the 30 percent tax on registration fees for drugs and medical equipment and the 30 percent on test fees for special equipment.
The charges of some government-pricing services will decrease, as will household garbage disposal fees. The charges of intermediary services will be regulated.
Labor costs will be reduced by implementing such policies as lowering the premium rate of work injury insurance and canceling the back pay guarantee fee.
Logistics costs covering container fees, port fees, and the passage fee of vehicles will also be reduced.