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Policies improve people's livelihoods in 2020

2020-12-14

In 2020, the government unveiled several policies, such as lowering import tariffs, deferring income tax payments, and cutting taxes and fees, in order to stabilize employment, promote consumption and improve people's livelihoods. Let's take a look.

-- Lowering import tariffs for some products

China implemented provisional import tax rates that are lower than the most-favored-nation tariff rates for over 850 commodities starting Jan 1, according to a circular on the adjustments of import tariffs issued by the Customs Tariff Commission of the State Council.

Under the circular, China introduces or reduces the provisional import tax rates on products including frozen pork, frozen avocados and nonfrozen orange juice, as well as imposes zero import tax on pharmaceutical products containing alkaloids for asthma treatment and raw materials for the production of new diabetes medicines.

-- Deferring income tax payment

China will defer income tax payments for small companies with thin profit margins, as well as individually owned businesses, to help them resume business and production, said the State Taxation Administration.

Small companies with thin profit margins are allowed to suspend payments of corporate income tax from May 1 to Dec 31 this year until the first filing period in 2021, once they complete required filing procedures, according to a statement published on May 29.

Individual business owners can delay payments of individual income tax incurred in the same period until the first filing period next year, the statement said.

-- Efforts to stabilize employment

Chinese authorities on July 16 released a circular aimed at supporting small stores as part of efforts to increase employment, expand consumption and improve people's livelihoods.

The circular, jointly issued by the Ministry of Commerce and six other government departments, detailed measures to develop 1,000 clusters of small stores nationwide by 2025.

E-commerce platforms, logistics firms, trading enterprises and central kitchens are encouraged to cooperate with small stores to reduce their costs, according to the circular.

-- Spurring auto consumption

Chinese authorities unveiled a slew of measures to stabilize and expand car consumption, amid efforts to ensure the stable and normal operation of the economy, said an official circular on April 29.

Financial institutions will be encouraged to conduct financial business including auto consumption credits, said the circular, stressing good use of consumer auto financing.

More efforts will be made to increase support for personal auto consumption credits and further release the auto consumption potential by appropriately lowering the down payment ratio and loan interest rate as well as extending the repayment period, the circular noted.