Xiangzhou District, Zhuhai

China's newly-introduced tax cuts and fee reductions saved Zhuhai businesses and individuals 5.7 billion yuan ($808 million) in the first half of this year, according to the latest statistics from the Zhuhai Tax Service of the State Taxation Administration.

The easing of tax and fee burdens have boosted enterprises' investment and encouraged consumption, which supported stable economic growth in the city from January to June.

The value-added tax reform saved businesses 1.62 billion yuan ($230 million) by the end of June. The manufacturing industry gained the most from the reform, with 1.23 billion yuan ($174.6 million) of value-added tax reduced during the period. The wholesale and retail industry followed suit, recording a value-added tax cut of 334 million yuan ($47 million).

The value-added tax cut has directly contributed to the drop in commodity prices. The 4S stores across Zhuhai generally adjusted vehicles prices, while supermarkets used the saved money for promotions and sales.

The reduced individual income tax totaled 1.69 billion yuan ($239.9 million) in the first six months of this year, which also stimulated consumption.

In the first six months of this year, the total retail sales of consumer goods grew by 7.7 percent year-on-year to 57.58 billion yuan ($8.2 billion). The sales volume of automobiles was 5.95 billion yuan ($844.6 million), up 3.8 percent year-on-year.

A staff member of the Zhuhai Tax Service of the State Taxation Administration provides consultation on the tax cut and fee reduction policies. [Photo courtesy Southern Metropolis Daily]

In addition, the corporate income tax reduction for sci-tech enterprises also incentivized them to spend more on R&D. The R&D expenditure of industrial enterprises above designated size increased by 43 percent year-on-year during the January-June period.