Implementing structural tax and fee reduction policies is a crucial measure to promote high-quality economic development.

During the “14th Five-Year Plan” period, the nationwide cumulative tax and fee reductions are expected to exceed 10 trillion yuan. These savings have not only become a vital funding source for various market entities to sustain development but also injected strong momentum into high-quality economic growth.

Enabling More Businesses to Benefit from Preferential Tax Policies

Inside the production workshop of Hebei Yinghu Agricultural Machinery Co., Ltd., workers are busy assembling harvester parts on the assembly line. This specialized manufacturer of corn harvesting machinery, integrating R&D, production, sales, and service, achieved a historic breakthrough in 2024 with revenue nearing 770 million yuan and total profits reaching 110 million yuan.

“Tax incentives have revitalized our working capital and played a significant role in the company’s growth,” said the company’s financial officer. In 2024, the enterprise enjoyed cumulative tax benefits exceeding 28 million yuan. Additionally, it is expected to benefit from over 19 million yuan in additional R&D tax deductions and reductions.

A series of tax and fee reduction policies have delivered tangible benefits to market entities.

During the “14th Five-Year Plan” period, the government introduced multiple tax reduction measures, with nationwide cumulative reductions estimated at 10.5 trillion yuan, alongside over 9 trillion yuan in export tax refunds.

Policies focused on supporting technological innovation and advanced manufacturing accounted for 3.6 trillion yuan, or 36.7% of the total reductions. Private businesses, including small and micro enterprises, benefited from 7.2 trillion yuan (72.9%) and 6.3 trillion yuan (64%), respectively.

These targeted, broad-reaching policies have allowed market entities to genuinely benefit, strengthening confidence and driving high-quality economic and social development.

Tax Cuts Fuel Long-Term Economic Growth

Tax data reflects economic trends. While tax reductions may impact short-term revenue, their role in stimulating growth supports long-term fiscal health.

Guizhou Jinze New Energy Technology Co., Ltd., a capital-intensive biomass energy startup, once faced significant financial pressure.

“Tax authorities’ support was critical,” noted the company’s deputy general manager. The firm received over 60 million yuan in tax credits, enabling technological breakthroughs and production expansion. Its industrial waste-to-ethanol project, launched in April 2023, has since generated over 200 million yuan in revenue.

During the “14th Five-Year Plan” period, China’s R&D tax deduction policies expanded significantly. In 2024 alone, deductions reached 3.32 trillion yuan for 615,000 enterprises, up 25.5% and 16.7% from 2021.

Reduced taxes translate to enhanced economic vitality and resilience.

As of mid-year, China’s registered tax-paying entities exceeded 100 million, a net increase of 30 million since 2020. VAT invoice data shows that from 2021 to 2024, equipment and high-tech manufacturing sales grew annually by 9.6% and 10.4%, respectively, with private businesses increasing their share of national revenue from 68.9% to 71.7%.

These policies accelerate a virtuous cycle of corporate growth, industrial upgrading, and economic expansion.

Fast-Tracking Policy Benefits to Businesses

Wuxi Turbine Blades Co., Ltd., a Jiangsu-based innovator with cross-border operations, exemplifies tailored tax support.

“Tax authorities have been a stabilizer for our growth,” stated the CFO. The company received 194 million yuan in R&D deductions and 68 million yuan in tax rebates, fueling cutting-edge projects.

Customized services like “tax health checks” and “project concierge” are being rolled out nationwide, ensuring prompt delivery of policy benefits.

Simultaneously, authorities are cracking down on fraudulent claims, having investigated 21,800 cases involving 26.9 billion yuan during the “14th Five-Year Plan” period, with 31 cases exposed this year.

“Enforcing compliance protects legitimate beneficiaries,” emphasized a university professor. Enhanced tax data analytics and credit systems are improving oversight to ensure policy dividends reach their intended recipients.