More SME Tax Breaks On The Way In China

China has been having a rough year, and an especially rough summer, considering its recent currency devaluation and massive stock market slump late last month that spooked markets the world over.

Now, the nation is announcing new efforts to get its economy back on track, and part of that strategy includes support for small businesses. Reports from the Hong Kong Free Press yesterday (Sept. 9) said the nation is looking to implement tax breaks for SMEs as part of its plan to adopt “stronger” fiscal policies.

[bctt tweet=”China is looking to implement tax breaks for SMEs as part of its plan to adopt “stronger” fiscal policies.”]

Reports said China’s finance ministry announced the plans as an effort to reach a 7 percent growth rate for the nation’s economy. To do so, officials said the country needs to develop a “proactive fiscal policy, fine-tune the measures in a timely manner and accelerate reforms that will stabilize growth.”

The announcement gave stock markets a positive bump on Wednesday, Hong Kong Free Press added.

This isn’t the first time China has turned to tax breaks for small and medium-sized businesses in an effort to restart its economic growth. Last June the Ministry of Industry and Information Technology’s China Center for Promotion of SME Development commended government plans to expand SME tax cuts, one officials estimated would save these companies about $23 billion a year.

Industry experts in the nation have pointed to the need for greater transparency in small business banking practices — for instance, in the case of hidden bank fees. Tax breaks also follow recent orders by the China Banking Regulatory Commission for banks in the country to increase lending to small businesses.

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