China Pledges To Cut Income Tax Of Companies Producing Anti-Coronovirus Products

China Pledges to Cut Income Tax of Companies Producing Anti-Coronovirus Products

BEIJING (UrduPoint News / Sputnik - 14th February, 2020) The Chinese government is planning unprecedented tax relief for selected producers in a bid to stimulate the output of medications and medical products against the spread of the novel coronavirus, recently dubbed COVID-2019, a Chinese Finance Ministry official said on Friday.

"Concerning tax exemptions, they are primarily granted to key enterprises producing goods for the prevention and fight against the coronavirus spread," Ou Wenhan, an assistant minister of finance, said at a press conference.

According to the official, the expenses that such companies bear on procuring equipment necessary for increasing their production capacity will be deducted from their income tax.

A similar income tax deduction will be granted to companies transporting anti-coronavirus goods, he said.

Stepping up efforts to stimulate the production medications and medical equipment to treat COVID-2019, the Chinese government will buy the entire output so that companies do not have to worry about unsold excess supplies, the official added.

Other measures in the bundle, according to him, will be to grant companies and individual citizens an income tax deduction in the amount of funds they have donated to the fight against COVID-2019, as well as to grant a registration fee waiver to companies that develop new products to fight coronavirus.

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