China waives tax policies to support organizations controlling spread of coronavirus

The national finance ministry and taxation watchdog released a statement to reduce financial burdens on some sectors and support the country’s fight.

The Chinese government has proclaimed a new set of tax policies to reduce financial burdens on some sectors and support the country’s fight against the coronavirus epidemic, Xinhua News Agency reported.

The National finance ministry and taxation watchdog released a statement declaring that firms in the transportation, catering, accommodation and tourism sectors, their losses logged in 2020, can be carried over to an extended maximum period of eight years.

Employees of transportation, life service and daily necessities delivery service sectors will be exempted from the value-added tax as well. According to new policy the Airlines’ payment to the government’s civil aviation development fund is also waived.

Chinese authorities also specified preferential tax policies regarding donations and subsidies for people participating in the epidemic control.

The specific tax policies took effect on January 1st and the expiration date will be decided later based on the epidemic situation, according to the statement.

According to official figures, the number of fatalities due to the coronavirus exceeds 500 patients. At the same time, the confirmed infected are about 30,000 in the world since the outbreak has spread to more than 25 countries.