Large-scale tax cuts best way to support non-public sector

THE STATE ADMINISTRATION OF TAXATION organized a meeting with representatives of 12 private enterprises in Beijing last week to solicit their suggestions on how to ease their tax and fee burdens. Wang Jun, head of the tax administration, pledged to carefully study the entrepreneurs' suggestions and provide them with better services and more supportive policies. Beijing Youth Daily comments:

It is good to see the taxation authority showing its earnestness in striving to better serve privately-owned businesses.

Reducing the tax burden on private enterprises can provide them with more direct support than easing their difficulties in obtaining financing. It only needs the government's decision to cut the tax and administrative fees they have to pay, while the State-run banks have to be persuaded to lend to private companies because they prefer to lend to State-owned companies as they are more confident of their repayment capabilities.