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Hainan expands tax benefits to another 143 areas of economic activity

In the near future a number of companies will be able to significantly reduce costs by starting to pay consumption tax at a reduced rate of 15%

HAIKOU, February 1. /TASS/. The Hainan authorities have extended tax benefits to another 143 areas of economic activity, reported the Hainan Daily.

According to the newspaper, the new measures will affect 14 industries, including manufacturing, telecommunications and transport, construction companies and software manufacturers. They will affect the financial sector and commercial organizations involved in leasing, logistics, wholesale and retail trade, as well as the implementation of projects in the field of agriculture, ecology, culture, health and public education, hotel and restaurant business.

According to the decision of the Hainan government, in the near future a number of companies will be able to significantly reduce costs by starting to pay consumption tax at a reduced rate of 15%. The corresponding measures will stay in effect until December 31, 2024.

On June 1, the Central Committee of the Chinese Communist Party and the State Council published the General Development Program for Hainan's Free Trade Port, according to which an effective mechanism to stimulate sustainable and long-term growth should be finally formed in Hainan by 2025. It is expected that thanks to new methods, many of which are being introduced in China for the first time, the province will be able to fulfill a number of key socio-economic tasks necessary to form a powerful financial and economic center in the country’s south. It is assumed that by 2035 both the economic and innovative potential of this region will be maximized, and it will become one of the most attractive places for international investors.

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