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Tax cuts for small firms urged

Tax cuts for small firms urged

Updated: 2012-03-12 18:54

By Zhou Siyu (chinadaily.com.cn)

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Small companies should be given tax breaks in order to expand their business, create more jobs, and boost economic development, said Li Jinzhu, vice-governor of Shaanxi province, on Monday.

Shaanxi received 16 billion yuan ($2.5 billion) in taxes from small companies, which accounted for 6 percent of the province's annual revenue, Li said.

Even if taxes on small businesses were cut by half, the reduction in the province's revenue would only be 3 percent, which "is affordable," he said.

The province has more than 1.4 million small companies, accounting for more than 4 million jobs.

"With further development, these small companies could do more to boost the local economy," Li added.

The provincial government this year has officially set the target of boosting small companies' revenue by 22 percent from last year, according to local media reports.

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