SMEs to Get More Government Support by Cutting Down Taxes
Premier Li Keqiang said that the Central Government will be increasing its support to small firms by cutting down on their taxes and increasing their subsidies and hope that banks will step up to help them. Companies that have monthly sales revenues between 20,000 to 30,000 yuan will get their taxes waived.
To rewards companies that hire workers that cannot find employment easily the government will award these firms social insurance subsidies. Banks are encourages to create plans that focuses on lending to small and medium and micro sized enterprises and the government will support these firms by purchasing their goods and services.
Several pledges came in support of companies as the economy in China is starting to slow down again as data that was released is showing that factory output in China grew in August during its weakest pace in six years which placed fears for the world’s second largest economy is once again suffering a deeper downturn if no fiscal and monetary policies will be loosen.