The proposal puts forth a series of preferential policies beginning January 1, 2006, in line with the strategy, which will in turn help push forward rapid development of the province's coastal economic belt.

Action points

Based on the statistics in 2005, 70 per cent of all value-added tax, revenue tax, enterprise income tax, individual income tax and property tax levied on enterprises in the five areas of Changxing Island Lingang Industrial Zone, Liaoning (Yingkou) Coastal Industrial Base, Liaoxi Jinzhou Bay Coastal Economic Zone, Liaoning Dandong Industrial Zone and Dalian Huayuankou Industrial Zone will be refunded.

The funds will be channeled back into infrastructure construction and support the building of leading industries.

High and new technology enterprises in the five zones will be levied income tax at a rate of 15 per cent, according to the proposal.

Also, newly set up domestic high and new technology enterprises in the five key zones will be exempt from tax for two years from the year they begin to make profits.

In terms of providing bank loans and guarantees, the proposal said the provincial small and medium-sized enterprise credit guarantee centre will give priority to enterprises in the zones.

Provincial financial departments will also provide loan subsidies to technology renovations and service projects in the sectors of equipment manufacturing, raw material processing, refined chemicals, agricultural product in-depth processing, textiles and pharmaceuticals.

In addition, financial assistance will be given for quality system accreditation, overseas product promotion, participation in international exhibitions and exploring international markets.

Great support will be given to the export processing bases, which are established in five major regions. The development fund of foreign trade for old northeast industrial base will offer favor in their purchase of intellectural property, upgrade of export, research and development of new products, products registration and information issurance abroad, development and cultivation of farm products.

As to all the enterprises, including established and newly established, in five major regions, their administrative and undertaking chargess will be exempted. For those concerned with the state management, the charging amount will be born by the park or the financial department of the city in which the park located. Those concerned with the provincial management will be exempted.

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