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Zhanjiang launches measures to stabilize enterprises' development

(en.zhanjiang.gov.cn) Updated: 2020-05-26

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Zhanjiang has launched a series of measures in finance and taxation, social insurance, foreign trade, as well as employment to stabilize the development of its enterprises since the outbreak of the novel coronavirus (COVID-19) epidemic.

By May 25, all industrial enterprises above designated size that have a yearly main business income of 20 million yuan ($2.8 million) or above in Zhanjiang have resumed their work, with a rate of capacity utilization of about 80 percent.

Enterprises that transformed their operations to produce anti-virus supplies, such as medical protective clothing, medical masks, and medical alcohol, or those expanding their production capacity can receive a reward that is equal to 70 percent of the invoice value (excluding taxes) of equipment purchasing, with the maximum amount of 5 million yuan available per enterprise.

To date, there have been 19 mask manufacturers, three protective clothing manufacturing enterprises, four infrared thermometer manufacturers, six medical alcohol and disinfectant enterprises, two medical glove manufacturers, as well as one goggle manufacturer in Zhanjiang.

The city has also set up the integrated service platform for medium and small-sized enterprises in Zhanjiang to solve their problems related to work resumption.

By May 20, all 281 appeals on the platform were solved within 48 hours. Among them, 50 enterprises asked for help with acquiring the masks needed for work resumption.

Enterprises that have rented State-owned properties and cannot conduct normal operations due to the impact of the COVID-19 epidemic have been exempted from rent payment for the first month, and half the rent payment for the second and third months. It is estimated that about 16.4 million yuan in rent payments will be exempted, benefiting 2,092 enterprises.

Micro, small, and medium-sized enterprises in Zhanjiang that have difficulties in business operation due to the COVID-19 epidemic can defer their payments to the housing provident fund and make a supplementary payment within three months after the epidemic is overcome. They can also apply to reduce the deposit ratio of the housing provident fund to 5 percent.

Financial institutions in Zhanjiang have launched various financial products to support enterprises resume work. By the end of April, the city's banking institutions have extended nearly 15.53 billion yuan in loans to 3,126 enterprises, saving them 51.93 million yuan in interest.

In addition, Zhanjiang also provides steady post subsidies for workers in micro, small, and medium-sized enterprises. By May 20, the city has issued 29.89 million yuan in steady post subsidies, benefiting 117,943 people.

Taxes like value-added tax (VAT) and income taxes of micro, small, and medium-sized enterprises in Zhanjiang have also been exempted or returned to reduce their financial burden. By April, 18 enterprises involved in the production of anti-virus supplies received a full refund of the tax credits for the incremental VAT of 14.4 million yuan.

Green channels have been opened at Zhanjiang Customs for imported medicine, as well as medical apparatuses and instruments for COVID-19 prevention and control. Goods donated from overseas for COVID-19 prevention and control between Jan 1 and March 31 were exempted from import duties, VAT, and consumption tax.