East China’s Jiangsu province has implemented value-added tax or VAT credit refunds to help market players boost confidence, stabilize expectations, and promote the steady and healthy operation of the economy.
Jiangsu will dole out 180 billion yuan in annual VAT credit refunds this year, accounting for more than one-tenth of the country's total.
The VAT credit refunds will support manufacturing, scientific research and technical services, electricity, heat, gas and water production and supply, software and information technology services, ecological protection and environmental governance, transportation, storage and postal services.
In order to improve the efficiency of tax rebates, Jiangsu will establish a departmental coordination mechanism, implement a tax rebate data sharing system among the finance, taxation, and the local branch of the People's Bank of China, and implement a separate allocation of special funds for tax rebates and implement a direct funding mechanism.
China has started to implement VAT credit refund on a large scale to provide strong underpinnings for keeping the operations of market entities stable and maintaining job security, as part of effort to sustain stable macroeconomic performance.
The country will release around 1.5 trillion yuan of VAT credit refund this year to support businesses directly and efficiently.
