Service sector

Service sector in Guangdong to get relief

By QIU QUANLIN in Guangzhou and MA ZHENHUAN in Hangzhou | DAILY CHINA | Updated: 2022-03-29 09:34

Provincial government offers tax cuts and subsidies amid ongoing outbreaks

Specific policy measures will be implemented to maintain the sustainable growth of the restaurant, retail, tourism, transportation and civil aviation sectors in Guangdong Province amid the COVID-19 pandemic. 19 underway, according to a circular released Friday by the provincial government.

Workers in the retail and restaurant sectors in Guangdong, an economic powerhouse in southern China, will receive subsidies covering more than half the cost of regular nucleic acid testing for the novel coronavirus that causes COVID -19.

Internet-based businesses, including takeaway platforms, have been told to further reduce the service fees they charge catering businesses to reduce their operating costs.

Loans will be offered to catering businesses and insurance companies have been asked to develop tailor-made products for businesses in the sector to help them avoid further economic losses, according to the circular.

“In addition to policy measures, restaurants should also provide diversified and tailored services to customers to ensure sustainable business growth,” said Yin Jianbo, president of Fashion Gourmet Group, based in Guangzhou, the provincial capital of Guangdong.

Subsidies will be granted to operators of freight and passenger transport services using new energies, the circular adds.

Public transport services such as buses, subways, taxis and long-distance buses will be exempt from value added tax in the province.

The 47 measures described in the circular also deal with financial aid, tax exemptions and credit financing, aimed at strengthening the business confidence of market players in the services sector and helping them to become more resilient in the face of the COVID-19 outbreak, said Huang Huadong, deputy. general manager of the Guangdong Provincial Development and Reform Commission.

“The measures will help reduce business operating costs and optimize the business environment to support market players,” Huang said at a press conference on Friday.

Guangdong reported four new confirmed locally transmitted COVID-19 cases and 18 new asymptomatic carriers on Sunday, according to the provincial health commission.

The measures also include a 50% tax exemption for small businesses.

Market participants operating in parts of Guangdong formerly listed as high-risk areas for COVID-19 transmission will be offered six-month rent reductions this year, while those in other areas will be eligible for one-year reductions. duration of three months.

The new measures closely follow the 25 others issued by the provincial government earlier this month. These measures included aid and support policies such as reducing production and operating costs, exploring market demand, and protecting the rights and interests of small and medium-sized enterprises and private enterprises, as well as as the provision of flexible services and precise financing.

They also stipulated that government procurement worth less than 2 million yuan ($320,000) or engineering projects worth less than 4 million yuan will be reserved for SMEs.

Guangdong has more than 15 million market entities, of which more than 6.3 million are SMEs and 8.3 million are individual or private enterprises.

In another development, policy measures have also been introduced in Hangzhou, the capital of eastern China’s Zhejiang province, aimed at supporting the recovery and development of service industries in light of the latest COVID outbreak. -19 in the city.

Since the outbreak began in the leisure wear town of Xinhangpai on March 5, businesses in Sijiqing, a clothing market in Hangzhou, have had their operations suspended for two weeks, according to a store manager who requested the ‘anonymity.

“A rent reduction or waiver is urgently needed as we have lost a lot of business in recent weeks,” she said on Monday.

According to the measures, small and micro businesses in the service sector and sole proprietorships that rent premises belonging to municipal and district public enterprises will not have to pay rent for three months.

The policies introduced in Hangzhou cover financial subsidies, tax reductions and financial credits to effectively enhance market confidence in the service sector and promote sustainable development, according to the Hangzhou Development and Reform Commission, the catering, retail, tourism and transport industries to receive targeted support. .

Fang Xiaoying in Hangzhou contributed to this story.