Chongqing - Production lines at the Chongqing factory of Webasto are operating at full capacity. Since entering the Chongqing market in 2006, the company has become the roofing provider for most vehicle manufacturers in the region.
For years, Webasto Chongqing has been benefiting from favorable tax policies issued to support entities in West China. According to Wang Longquan, general manager of the Chongqing Factory, “last year alone, we saved more than 9 million yuan of tax refunds, which alleviated the fiscal pressure and allowed us to spend more on production.” As a foreign-invested manufacturer, Webasto Chongqing received another 14 million yuan of tax rebate in 2021, according to a batch of policies implemented to support companies of its kind.
The auto industry of Liangjiang New Area registered double-digit year-on-year growth in Q1 of 2022. (Photo/Ran Yulin, Liangjiang New Area Media Center)
Last year, more than 7 billion yuan of tax and fee cut was rolled out in Chongqing Liangjiang New Area to support market entities, according to the taxation bureau of the new area. With the tax and fee deductions that vitalize market entities and bolster economic growth, last year, the new area reported more than 435 billion yuan of above-scale industrial output, up 21.5% year-on-year, with a record high industrial economy scale.
On April 1 of this year, when a new large-scale value-added tax (VAT) credit refund policy was enforced, Chongqing Endurance Gas Equipment Co, a local micro manufacturer of gas equipment, became the first entity in Liangjiang New Area that applied. The company saw a severe decline in revenue and a tight cash flow due to challenges posed by the pandemic, such as declining orders and rising prices of raw materials, said Yang Chun, head of finance. Under the policy this year, the company is eligible to apply for a full value-added tax credit refund for the first time.
“We can receive more than 260 thousand yuan, a significant deal and a big confidence booster to the company. We will spend it on salaries and research and development,” said Yang.
The latest data shows that Liangjiang New Area accommodates more than 110 thousand market entities, more than 60 thousand of which were newly registered in 2021. (Photo provided to iChongqing)
The policy this year priorities support to micro and small businesses and six sectors, including manufacturing, scientific research and technical services, power supply, heating, gas and water supply, software and information technology services, ecological conservation, environmental governance, transportation, and storage and postal services. Taxpayers in Chongqing can complete the application online with a few clicks to confirm relevant information, leaving all other work to tax workers and big data technology.
“The application can be reviewed usually in just one workday before being submitted to the national treasury, after which the refund will be transferred to the bank account of the entity," said a staff of the taxation bureau.
(This article was written by Guo Shuyu, Liangjiang New Area Media Center)