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Zhejiang’s new policy can reduce an annual burden of 85 billion yuan for enterprises.
2018-10-31 10:08:43

On October 29th, at the press conference on strengthening the burden reduction and cost reduction of enterprises in Zhejiang Province, the “Opinions on Further Reducing Enterprise Burden and Strengthening Enterprise Competitiveness” was officially unveiled. This is our fourth batch of policies for enterprises to reduce burdens and costs since 2016.

This is the third year in which enterprises in Zhejiang Province have reduced their burden and costs. In 2016 and 2017 respectively, the enterprises in the province reduced their burden by 101 billion yuan and 125 billion yuan. In the first three quarters this year, the province has reduced the burden of enterprises by 118 billion yuan. From a national perspective, Zhejiang is currently one of the provinces with the most reduction, the most strength and most striking effects.

Zhejiang began to reduce the burden and cost of enterprises in 2016. According to the data, at the end of 2015, the cost of the main business income per 100 yuan for enterprises above the designated size in Zhejiang Province was 84.8 yuan; by the end of 2016, the data was 84 yuan, dropping 0.8 yuan in a year; in 2017, it dropped to 83.7 yuan; from January to August this year, in the case of a substantial increase of 9.6% in raw material costs and 13.6% in labor costs, the enterprises still maintained a cost of 83.7 yuan per 100 yuan of income in the main business.

As of August this year, the main business cost per 100 yuan for industrial enterprises in our province is 0.63 yuan lower than the national average in the same period, and also significantly lower than other large industrial provinces in the east coast.

While Zhejiang spares no effort to help enterprises reduce their burden and cost, the competitiveness of the enterprises has been significantly enhanced.

Corporate profits continue to improve. From 2016 to now, the profit growth of industrial enterprises above the scale of the province has maintained double-digit growth. In 2016, 2017 and the first 8 months this year, it increased by 16.2%, 16.6% and 15.9%, respectively.

By reducing the burden and costs, we will guide enterprises to use the saved money for research and development to enhance product competitiveness, and truly realize the supply-side structural reform. In recent years, the innovation vitality of our provincial enterprises has been continuously enhanced, and the enterprises above the designated scale have continuously increased their investment in R&D by over 22% annually. Taking 2017 as an example, the additional deduction for enterprise R&D expenses in Zhejiang Province reached 60.98 billion yuan in the year, an increase of 52.6% over 2016, which also confirmed the substantial increase of enterprise R&D expenses.

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