Over 2 trillion Yuan tax cuts to boost scientific and technological innovation and manufacturing industry development

Over 2 trillion yuan of tax cuts in three quarters to the end of September this year were used to boost scientific and technological innovation, and the development of the manufacturing industry, in a way to support higher-end, smarter, and more eco-friendly trends in the manufacturing sector, according to the data released by the State Taxation Administration.

“We are awarded over 100 million yuan of tax incentives every year in return for about the same amount of investment in the R&D and manufacturing of power supply products in the fields of 5G, intelligent manufacturing, Internet of Things, new energy, etc. It greatly helps enhance our competitiveness,” said an executive officer of the manufacturer.

Driven by tax incentives, science and technology innovation, and manufacturing development improved steadily this year. According to value-added tax invoice data, high-tech industries raised their sales revenue by 11.4% year-on-year, of which scientific and technological achievements-to-production services and information technology services were up by 27% and 12.3% year-on-year, reflecting the accelerated transformation of the elements of innovation and speeding up of information technology process.

The sales revenue of the digital economy's core industries increased by 7.4% year-on-year. In comparison, the digital technology application industry and digital content and media increased by 11% and 14.8% year-on-year in sales revenue, respectively, reflecting the advancing progress of digital industrialization.

The sales revenue of the manufacturing industry increased by 3.6% year-on-year from January to October. The sales revenue of the equipment manufacturing industry, digital product manufacturing industry, and high-tech manufacturing industry increased by 5.3%, 8.5%, and 8.7% year-on-year respectively, especially the sales revenue of advanced manufacturing industries, such as computer manufacturing, communication and radar equipment manufacturing, and intelligent equipment manufacturing, increased by 16.4%, 21.6% and 11.2% year-on-year respectively, reflecting the advancing progress to high-end and intelligent manufacturing.