China expands tax breaks for small businesses, supports equipment upgrades

Beijing (Reuters) – China will expand tax breaks for some small businesses, including manufacturers, and provide low-cost loans to support companies with equipment upgrades, state media said on Wednesday, citing the Cabinet. Total taxes paid by small companies 53 100 million yuan ($. billion) will be delayed for another four months from September 1, state media quoted the cabinet as saying after a routine meeting. Authorities will refund State media quoted the cabinet as saying that China would support commercial banks with low Issued mid- to long-term loans at 3.2% to support small businesses’ equipment upgrades in the fourth quarter.

The Central Bank will pass a value of 25 $1 billion to support the initiative, Cabinet said, adding that the one-year loan will be rolled over twice. This will ensure that the real interest rate on bank loans for small business equipment upgrades is not higher than 0.7% in the fourth quarter.