China to reduce tax and fee this year to support SMEs

China will further reduce tax and fee in 2022 to support small and medium sized enterprises (SMEs), Wang Jun, head of the State Taxation Administration, the country’s taxation authority, has said. In 2021, China has deferred an estimated 200 billion yuan of tax payments for MSMEs in the manufacturing sector to boost the country’s industrial economy.

The new tax and fee reductions given in 2021 are expected to be more than 1 trillion yuan (about $157 billion), Jun said at an annual meeting. In the past six years from 2016 to 2021, the total reduction in tax and fee was over 8.6 trillion yuan.

This year, the Chinese government will also take further steps to tighten regulation on taxes, and will impose severe punishments on all tax evasion, the meeting was told, according to Chinese media reports.