Still a lot of room to ease tax burden on micro and small enterprises

IN RECENT YEARS, as the downward pressure on the economy has increased, the government has launched a series of measures which have played a positive role in reducing the cost and tax burdens on enterprises. However, due to different cost structures in various industries, enterprises pay different taxes and fees, and the effects of tax reduction and fee reduction policies vary. Beijing News commented on Thursday:

Due to the high overall costs, the meager profits they make and the operational difficulties they face, small enterprises, startups especially, need more support and help.

Although micro and small enterprises can enjoy preferential policies such as tax exemptions and reductions, the profitability of startups remains limited so the corresponding preferential margins will be smaller. Most startups still have to pay value-added tax and urban construction tax, even if they do not make any profit.