According to statistics from the taxation bureau within the Kunming Hi-Tech Zone, more than 80 percent of micro and small enterprises in the Zone benefit from the new support policy and received tax reductions of 9,600 yuan ($1,555).

The Ministry of Finance and State Administration of Taxation announced the new policy on Sept 25 in support of SMEs. It said that from Oct 1 2014 to Dec 31 2015, the taxpayers including SMEs, privately-owned businesses and individuals whose monthly sales are between 20,000 and 30,000 yuan do not need to pay added-value tax and business tax.

At present, 80 SMEs, accounting for 86 percent of the taxpayers in the Zone, meet the requirements and benefit from the new policy. It is estimated that by the expiry date of the policy, altogether 770,000 yuan tax will be exempted. The new policy relieves the burden of SMEs and supports their better development.

By Shi Zihan and edited by Brian Salter