Shanghai unveils measures to reduce operational costs for enterprises

High-rise buildings dominate the skyline on both sides of the Huangpu River in Shanghai. (Photo by Gao Erqiang/chinadaily.com.cn)

Shanghai has announced the continuation of a comprehensive set of measures aimed at reducing operational costs to bolster the business environment and support the development of enterprises. The announcement was made during a news conference hosted by the Shanghai Municipal Development and Reform Commission on Friday.

The measures, comprising a total of 21 items, will remain in effect until Dec 31 this year and are designed to address the diverse needs of enterprises across various sectors. They focus on five key aspects: levies, employees, energy usage, financing and penalties, with the overarching goal of alleviating financial burdens and enhancing the competitiveness of businesses operating in Shanghai.

In the realm of taxation, Shanghai will uphold the national policy on structural tax cuts and extend the 50 percent tax and fee reductions for low-profit enterprises, small businesses and individually-owned businesses. Additionally, enterprises aligned with the city's industrial development will benefit from tax exemptions on property tax, while the exploration of pilot preferential policies for offshore trade stamp tax will be intensified.

The city also unveiled a significant initiative to support female employees, with maternity leave subsidies being the focal point of the announcement. Enterprises that meet the specific criteria will be eligible to claim a 50 percent reimbursement for social insurance fees paid during a female employees' maternity leave and childcare leave.

Furthermore, Shanghai aims to reduce energy costs for enterprises based in industrial parks, offering discounts on electricity, natural gas and water usage. The continuation of off-peak electricity price adjustments for weekends and major holidays will further contribute to cost savings for businesses in the city.

In a bid to ease financial burdens, particularly for small and medium-sized enterprises (SMEs), Shanghai will enhance credit support to stabilize financing costs, with a particular focus on tech-oriented firms. Start-ups will have increased access to loans, and SMEs will benefit from loan interest relief, alongside the implementation of a seamless loan renewal mechanism for micro and small enterprises.