Shenzhen on Wednesday unveiled a new set of 30 measures to support various aspects of economy, including further alleviating companies’ burdens, increasing financial support for the real economy, boosting consumption, and reviving culture and tourism, in its latest move to boost market confidence and spur economic growth.
The measures are the city’s fifth round of targeted policies designed for the current complex and challenging economic environment this year. They came into force Wednesday and will remain effective within the year, according to a government gazette.
Monthly refunds of new VAT credits and a one-time refund of outstanding VAT credits are available to companies in seven industries: wholesale and retail, agriculture, forestry, animal husbandry and fishery, catering and accommodation, resident services, education, health and social work, and culture, sports and entertainment.
To ensure stable employment, the city will refund 50% of unemployment premiums to large employers with no or few layoffs. Companies facing temporary operational difficulties will receive a subsidy of 500 yuan (US$75) per employee. Companies hiring 2022 college graduates are eligible for a one-time 1,500-yuan subsidy per employee hired until the end of the year. To qualify for the benefits, companies must sign a labor contract and participate in unemployment insurance schemes.
Small and micro enterprises and self-employed businesses affected by the pandemic that fail to pay for water, electricity and gas fees must not have these cut off from June to November, during which no late payment fees will be imposed. Small- and medium-sized firms that are State-owned property tenants will get their rents waived.
Enterprises obtaining bank loans from local commercial banks for the first time are entitled to a 2% interest subsidy. Sole proprietors can get a maximum 200,000-yuan interest subsidy.
To boost consumption, the city will reduce purchase taxes on some passenger vehicles and encourage well-known businesses to open their first-in-Asia/China/Shenzhen stores and flagship stores by granting a subsidy equal to 50% of the actual investment. The subsidy is capped at 1 million yuan.
To spur cultural consumption, the government will issue a prepaid card for watching art performances and movies and buying books. Its holder can get a subsidy equal to the deposit amount with a ceiling of 500 yuan per card. During weekdays, admission for the city’s State-owned A-level tourist attractions will be free.
The city will offer up to a one-off 5-million-yuan subsidy to organizers that introduce new world-famous exhibitions into the city.
To stabilize the supply chain, the city will facilitate cross-border transportation and subsidize airlines that operate cargo and passenger flights at the airport.