Easing firms' burden to boost the economy

The government has further eased enterprises' economic burden by reducing the share borne by employers for urban workers' basic aged-care insurance from 19 percent to 16 percent from May 1. It also has reduced the value-added tax (VAT) rate for manufacturing and other industries from 16 percent to 13 percent, and for industries such as transportation and construction from 10 percent to 9 percent from April 1.

The corresponding measures the government has taken along with these moves suggest the enterprises' tax burden will not increase. The reductions in VAT and other taxes and fees, which exceed public expectations, will not only reduce the enterprises' economic burden - including labor cost - but also enable them to give full play to their potential and improve their business performance.

Besides, small enterprises with monthly sales of less than 100,000 yuan have been exempted from paying VAT and urban maintenance and construction fees.