The tax reduction and exemption policy for small and micro businesses, which was recently rolled out by state authorities, has taken effect in Zhongshan, according to the Zhongshan Taxation Bureau. The policy mandates an increase in the tax exemption threshold, from 30,000 yuan per month sales volume to 100,000 yuan per month. This legislation alone will benefit tens of thousands of small and micro firms in Zhongshan.

For some cluster-developing sectors in Zhongshan, such as Xiaolan hardware industry and Guzhen lighting industry, which are dominated by small and micro businesses, the tax-reduction effect is expected to spread from the business level to the industry level.

In Xiaolan, for instance, taxpayers who benefit from this new policy account for 98.33% of the total of all small and micro businesses. There are 2,895 newly-added taxpayers whose monthly sales volume ranges from 30,000 yuan to 100,000 yuan.

"Our company was founded in October 2017, and its annual revenue amounted to 1.17 million yuan last year. The new policy will help us to reduce about 67,000 yuan of tax per year," said Liu Yaoxiang, the staffer in charge of the Zhongshan Wojin Truckle Co Ltd, which is located in Xiaolan.