Taxes

A. Any companies with 50 million yuan ($10 million) in fixed asset investment will get a refund on local added-value and income taxes for the first 2 years and a 50-percent reduction for the 3rd - 5th years. Any new businesses that are encouraged by the State will get a local tax waiver until the national preferential tax policy expires, if their main business income accounts for more than 50 percent of their total income.

B. Hechi also has favorable urban land use taxes for any company that uses wasteland that is not suitable for cultivation, so that it will be free from urban land taxes for five years, and will pay only 50 percent for the next 5 years.

C. The city will have preferential tax policies for non-government funded education so that private schools will be free from land taxes for teaching and scientific research purposes.