A workshop in Ningbo, East China's Zhejiang province. [Photo/cnnb.com.cn]

Ningbo in East China's Zhejiang province is taking further steps to alleviate the financial burden on companies, according to a recent announcement by local authorities.

In an effort to support all operating entities in the city, Ningbo aims to reduce their burden by more than 46 billion yuan ($6.29 billion) this year. A guideline released by the local government highlights the focus on small and micro enterprises, with the extension of certain preferential policies for these businesses. For instance, small-scale taxpayers with monthly sales of up to 100,000 yuan will continue to be exempt from paying value-added tax (VAT) until Dec 31, 2027.

In addition, the city plans to implement the policy of reducing individual income tax for individual industrial and commercial households with an annual taxable income of no more than 2 million yuan. This policy will also be extended until Dec 31, 2027.

Ningbo is committed to reducing various costs for enterprises, including labor, energy usage, logistics, and comprehensive financing. The city will also focus on standardizing enterprise-related fees, administrative licensing processes, and intermediary services. Additionally, efforts will be made to optimize enterprise supervision and inspection procedures.

Over the past three years, Ningbo has consistently implemented a combination of policies to reduce financial burdens on companies, promoting a congenial business climate and fostering innovation. Official statistics indicate that the city has already saved companies a total of 191.17 billion yuan in taxes and fees, encouraging their transformation and upgrading.