Zhejiang authorities consistently worked to alleviate financial burdens on enterprises over the course of the 13th Five-Year Plan period (2016-20), in response to the national call for tax cuts and fee reductions.

Zhejiang-based companies were exempt of 1.3988 trillion yuan ($216.12 billion) in taxes and fees and received 609.89 billion yuan in export rebates between 2016 and 2020. Last year alone saw nearly 200 billion yuan in tax and fee exemptions, as well as 153.67 billion yuan in export rebates.

"Due to the impact of the COVID-19 pandemic, Huahai Pharmaceutical had difficulties in resuming work and production, receiving sufficient supply of raw materials and ensuring smooth international logistics last year. However, favorable tax policies did help us greatly," Zhang Mei, assistant president of Zhejiang Huahai Pharmaceutical Co, told a local reporter.

The listed company, based in Taizhou, enjoyed a reduction of 44.9 million yuan in R&D expenses and a 58-million-yuan waiver, which targets high-tech enterprises, from its corporate income tax last year. It was also waived of 10 million yuan in its payment for employees' social insurance.

"I hadn't thought of the zero-tariff policy for technology service exportation before it came into reality," Zhang Shanlin, finance director of Jiaxing Viva Biotech Co, told a reporter. According to Zhang, the company signed a technology exportation contract with an American client on protein testing services valued at nearly 50 million yuan and received about 1.9 million yuan in export rebates from local taxation authorities.

China is expected to continue its tax and fee cuts this year. [Photo/China Daily]