RMB 742.8 Billion in Taxes and Fees Exempted or Reduced

A total of RMB 742.8 billion in taxes and fees have been exempted and reduced in the first quarter, which mainly consists of two parts: First, there was a cut amounting to RMB 318.2 billion to support the prevention and control of COVID-19 and bolster economic and social development; second, a further amount of RMB 424.6 billion was cut as a result of the continued implementation of the broader tax and fee reduction policy laid out in 2019.

According to the State Taxation Administration, with a series of macro-control policies in place, China’s economic and social operation compatible with epidemic prevention and control has gradually recovered, and the order of production and social life is restored at a faster pace. It is expected that the decline of tax revenue in the second quarter will be significantly smaller than that in the first quarter.

In addition, as enterprises gradually resume production, the current sales revenue is close to that of last year. Manufacturing, high-tech industries, transportation, and logistics are all recovering well, and the potential for consumer spending is manifesting at an accelerated pace.