Tax and fee reductions are important measures to promote economic development and stimulate market vitality. According to the statistics of the Zhongshan Taxation Bureau, Zhongshan witnessed a 4.725 billion yuan increase of tax reduction from January to June 2019. 

As an import and export trade-oriented enterprise, Zhongshan Right On Trading Co Ltd views the reduction in the occupation of funds as the most obvious impact of the decrease in value-added tax rate in Zhongshan. Ms Wei, an accountant of the company, did the math: if the import value-added tax is about 200 million yuan, the tax rate of value-added tax is reduced from 16% to 13%, then the fund occupation will be reduced by 37.5 million yuan, with an average monthly reduction of about 3.12 million yuan. According to the data for the entire year, the tax rate reduction will help the company reduce the financing cost by 2.25 million yuan for 2019.

Zhongshan One Plus One Commercial Chain Stores Co Ltd has a total of 68 branch stores, 94% of which are in Zhongshan. "This round of tax and fee reduction,  and a 3% reduction in the value-added tax rate for wholesale and retail trade, have given us confidence in dealing with the fierce competition in the market. We expect to save nearly 4 million yuan in taxes and fees this year," said Mr He, the company's legal representative.

Small wholesale and retail enterprises can enjoy more types of tax incentives. Situated in Dongfeng Town, Zhongshan Haidiwei Electric Appliance Co Ltd was established in 2013. Speaking of the tax and fee reduction policy, Mr Luo, the legal person of the company, gladly said: "In recent years, our country has gradually introduced tax and fee reduction policies that constantly reduce the tax burden of our private enterprises, so that we can put more funds into research and development and production, and produce higher-quality products for consumers."