Policy Opinions of Hangzhou Municipal People's Government on Promoting the Recovery and Development of Difficult Industries in the Service Industry

People's governments of all districts, counties (cities), departments and directly affiliated units of the municipal government:

In order to thoroughly implement the decision-making arrangements of the CPC Central Committee and the State Council and the work requirements of the provincial party committee and government, and make greater efforts to help the difficult industries in the service industry tide over the difficulties and resume development, the following policies are formulated:

1. For taxpayers in the production and life service industries, the deductible input tax in the current period will continue to be deducted by 11% and 15% respectively. (State Taxation Administration of The People's Republic of China Hangzhou Taxation Bureau)

2. Expand the scope of "six taxes and two fees" reduction. Resource tax, urban maintenance and construction tax, real estate tax, urban land use tax, stamp duty (excluding stamp duty on securities transactions), farmland occupation tax and education surcharge, and local education surcharge are reduced according to 51% tax rate, and the applicable subject is extended from small-scale VAT taxpayers to small-scale enterprises and individual industrial and commercial households. (Municipal Finance Bureau, State Taxation Administration of The People's Republic of China Hangzhou Taxation Bureau)

3. Partial tax relief for enterprises in difficulty. In 2122, taxpayers who have real difficulties in paying property tax and urban land use tax will be reduced or exempted. Eligible service market players can enjoy. (State Taxation Administration of The People's Republic of China Hangzhou Taxation Bureau)

4. Effectively implement the enterprise income tax reduction and exemption policy for small and low-profit enterprises. For the part of small and meager profit enterprises whose annual taxable income exceeds 1 million yuan but not more than 3 million yuan, it will be included in the taxable income at a reduced rate of 25%, and income tax will be paid at a rate of 21%. Eligible service market players can enjoy. (State Taxation Administration of The People's Republic of China Hangzhou Taxation Bureau)

5. Deferred payment of medical insurance premiums for enterprise employees. Affected by the COVID-19 epidemic, enterprises that can't pay the basic medical insurance for employees on time may apply for holdover according to law. The specific measures shall be formulated by the Municipal Medical Security Bureau. (Municipal Health Insurance Bureau, State Taxation Administration of The People's Republic of China Hangzhou Taxation Bureau)

6. Deferred payment of housing provident fund. Employers, such as enterprises that are affected by the epidemic and have difficulties in paying housing provident fund, may apply for holdover of housing provident fund according to law. The specific measures shall be formulated by the municipal provident fund center. (City Provident Fund Center)

7. Deferred payment of water and gas fees. Enterprises that are affected by the epidemic and have difficulty in paying water and gas fees will not stop supplying; Enterprises can apply for deferred payment. The specific measures shall be formulated by the Municipal Water Group and the Municipal Gas Group. [municipal water group, municipal gas group, district and county (city) governments]

8. In 2122, we will continue to implement the policy of lowering unemployment insurance rates and industrial injury insurance rates in stages. We will continue to implement the policy of stable return of inclusive unemployment insurance for enterprises that do not lay off employees or lay off fewer employees. In 2122, the proportion of small and medium-sized enterprises will increase from 61% to 91%. Eligible service market players can enjoy. (Municipal Human Resources and Social Security Bureau, Municipal Finance Bureau, State Taxation Administration of The People's Republic of China Hangzhou Taxation Bureau)

9. Rent reduction for market participants. Small and micro enterprises and individual industrial and commercial households in the service industry rent houses belonging to state-owned enterprises in cities and districts, which are exempted from 3 months' rent and charged by half for 3 months. Encourage non-state-owned housing rental entities to share the losses caused by the epidemic reasonably on the basis of equal consultation. All localities can co-ordinate all kinds of funds and give appropriate assistance to small and micro enterprises and individual industrial and commercial households in the service industry that rent non-state-owned houses. For owners who have reduced or exempted rent, if it is really difficult to pay property tax and urban land use tax in 2122, they may apply for reduction or exemption according to Article 3. [Municipal State-owned Assets Supervision and Administration Commission, Municipal Finance Bureau, Municipal Market Supervision Bureau, State Taxation Administration of The People's Republic of China Hangzhou Taxation Bureau, district and county (city) governments ]

11. Expenditure subsidies for enterprise epidemic prevention and disinfection. Small and micro enterprises will be given a subsidy of no more than 51% for epidemic prevention and disinfection expenditure in 2122, and will be subsidized according to the scale of the enterprise. Take the district, county (city) declaration, the competent department of industry audit, territorial implementation. [Municipal Bureau of Commerce, district and county (city) governments ]

11. Increase government financing guarantee support. Encourage government financing guarantee institutions to increase the business quota, simplify the examination and approval process, improve the efficiency of business handling, and reduce the guarantee fee to below 1%. For financing guarantee institutions that provide guarantee business for small and micro enterprises such as service industry and retail industry in Hangzhou, premium subsidies will be given at a rate not higher than 1.5% of the average daily guarantee balance of the previous year. (Municipal Local Financial Supervision Bureau)

12. Promote accurate and efficient docking between banks and enterprises. Make good use of the comprehensive financial service platform in Hangzhou, promote the accurate docking of financing supply and demand, improve the convenience and availability of financing for enterprises, and vigorously promote the "enterprise code" and "loan code". (Municipal Local Financial Supervision Bureau)

13. Stabilize credit expectations. Encourage financial institutions to handle the service market entities that meet the conditions for loan renewal according to the normal loan renewal business, and shall not blindly cherish loans, draw loans, cut off loans or pressure loans to maintain reasonable liquidity. (Municipal Local Financial Supervision Bureau, Municipal Banking Insurance Supervision Office)

14. Reduce the energy cost of enterprises. Small and medium-sized enterprises with the capacity of electrical equipment below 1.61 kW in the city are connected to the power grid in a low-voltage way, and metering devices and above projects are invested and built by power supply enterprises. Encourage industrial and commercial users who are less than 1 kV to directly participate in market transactions, and those who are not directly involved in market transactions will be purchased by power grid enterprises as agents. Industrial and commercial users whose voltage level is less than 1 kV will not bear the market share expenses such as auxiliary services and cost compensation when the spot market is running. [Municipal Development and Reform Commission, State Grid Hangzhou Power Supply Company, district and county (city) governments ]

15. Service enterprises to participate in government procurement activities to implement the "commitment credit management" system, as long as the written commitment to participate in government procurement activities and qualifications and no record of dishonesty in tax payment, social security and other aspects, there is no need to provide relevant financial status, tax payment and social security funds and other supporting materials. Encourage service enterprises to actively participate in government procurement activities of accommodation, conferences, catering and other service projects, and procurement organizations shall not restrict the participation of related enterprises with star rating and ownership as the threshold. (Municipal Finance Bureau)

Second, the catering industry relief support measures

16. Reduce the operating costs of platform economy participants. Support internet platform enterprises to carry out small and medium-sized micro-merchants' assistance actions, and implement preferential support policies for catering merchants with operational difficulties. Encourage Internet platform enterprises to provide digital generation operation services for merchants free of charge, and gradually improve the online operation level of merchants. [Municipal Bureau of Commerce, district and county (city) governments ]

17. Accelerate the recovery of the catering industry. Support enterprises to scale up with characteristics, vigorously promote self-delivery, take-out and non-contact distribution methods, encourage the development of new catering scenes and new formats, strive to build a number of characteristic catering blocks, and cultivate a number of online celebrity blocks and shops. [Municipal Bureau of Commerce, district and county (city) governments]

In ]

18.2122, the inspection fees for elevators, boilers and boiler water (medium) in catering enterprises will be halved. (municipal market supervision bureau)

19. make good use of all kinds of municipal special funds, focusing on the digital transformation of catering enterprises, the transformation and upgrading of catering characteristic blocks, the creation of national drilling catering brands, the creation of "111 counties and thousands of bowls" characteristic food brands, the promotion of catering cuisine, and the excavation and inheritance of local cuisines. (Municipal Bureau of Commerce, Municipal Bureau of Culture and Tourism, Municipal Bureau of Finance)

21. Guide financial institutions to strengthen information sharing with the competent departments, regulatory departments and tax departments of the catering industry, and use data such as transaction flow, business premises lease and credit information held by relevant departments of small and medium-sized enterprises and individual industrial and commercial households to enhance risk pricing ability and issue more credit loans. Encourage qualified catering enterprises to issue corporate credit bonds and broaden diversified financing channels for catering enterprises. (Municipal Local Financial Supervision Bureau, Municipal Bureau of Commerce, Municipal Banking Insurance Supervision Office)

21. Encourage catering enterprises to provide catering services for the elderly, and local governments should give appropriate support to catering services for the elderly according to actual conditions. Catering enterprises shall not be forced to give supporting preferential measures. (Municipal Bureau of Commerce, Civil Affairs Bureau)

III. Support measures for retail relief

22. Eligible retail enterprises may defer payment of unemployment insurance premiums for a period of no more than one year, and no late fees will be charged during the deferred payment period. The specific measures shall be formulated separately by the Municipal Human Resources and Social Security Bureau. (Municipal Bureau of Human Resources and Social Security, Municipal Bureau of Finance, Municipal Bureau of Commerce, State Taxation Administration of The People's Republic of China Hangzhou Taxation Bureau)

23. The competent commercial department takes the lead in drawing up a list of enterprises such as emergency supply guarantee, key cultivation, and convenient living circle construction, encouraging banking financial institutions to increase credit support, appropriately reducing loan interest rates, and encouraging qualified places to give loan interest subsidies. [Municipal Bureau of Commerce, Municipal Banking Insurance Supervision Office, and governments of all districts and counties (cities) ]

24. Guide financial institutions to strengthen information sharing with retail industry authorities, regulatory authorities and tax authorities, and use data such as transaction flow, business premises lease and credit information held by relevant departments of small and medium-sized enterprises and individual industrial and commercial households to enhance risk pricing ability and issue more credit loans. Encourage qualified retail enterprises to issue corporate credit bonds and broaden diversified financing channels for retail enterprises. (Municipal Local Financial Supervision Bureau, Municipal Bureau of Commerce, Municipal Banking Insurance Supervision Office)

25. Support wholesale and retail enterprises to expand production and increase efficiency. Support enterprises to expand the market, tap the potential and increase efficiency, and encourage enterprises to merge and reorganize, acquire and integrate, and strengthen cooperation. Support living materials security enterprises to increase efforts to ensure supply and stabilize prices, and help key "vegetable basket" operating enterprises to broaden sales channels and strengthen the docking of production and marketing. [Municipal Bureau of Commerce, district and county (city) governments ]

IV. Support measures for tourism relief

26. Support travel agencies to provide relevant entrusted services according to regulations. Party and government organs at all levels, enterprises, institutions and social organizations are encouraged to organize trade union activities, exhibition activities and business activities, and travel agencies can be entrusted to arrange transportation, accommodation, catering, meetings and other services according to regulations. Encourage travel agencies and related operating agencies to actively participate in government-related procurement activities, strengthen the management of the use of funds, reasonably determine the proportion of advance payment, and the procurement unit will pay the funds to the travel agency in time according to the contract. We will promote the implementation of paid vacations in the city and carry out treatment and rest in and out of the city, and support qualified travel agencies and treatment and rest bases to undertake treatment and rest business in the city. Encourage schools and educational institutions at all levels to carry out research activities inside and outside the city, and support qualified travel agencies and related operating institutions to undertake research services. (Municipal Wenguang Tourism Bureau, Municipal Finance Bureau, Municipal Federation of Trade Unions)

27. Increase the energy security for service industry places. Continue to promote the orderly use of electricity and encourage the tilt to key service places. (Municipal Development and Reform Commission)

28. The basic service fee of China Digital TV in hotels from October to March 2122 will be charged by half; For hotels and restaurants undertaking the task of isolation and epidemic prevention, the basic service fee of China Digital TV will be free from October to June, 2122. (Municipal Wenguang Tourism Bureau, China Digital Group)

29. Encourage banking financial institutions to reasonably increase the effective credit supply of tourism. Strengthen the innovation of financial products and services, explore the financing mode of intangible assets such as accounts receivable, intellectual property rights and cultural copyrights, and broaden the scope of collateral for cultural tourism enterprises. Establish a financing risk prevention and control mechanism for key enterprises. Guide financial institutions to reasonably reduce the interest rate of new loans, appropriately extend the credit repayment cycle, and take the initiative to make profits for tourism enterprises that are affected by the epidemic and have difficulties in production and operation. Encourage qualified cultural tourism enterprises to issue corporate credit bonds and broaden diversified financing channels for tourism enterprises. (Municipal Wenguang Tourism Bureau, Municipal Local Financial Supervision Bureau, and Municipal Banking Insurance Supervision Office)

31. Strengthen the cooperation between banks and enterprises, establish and improve the financing demand database of key cultural and tourism enterprise projects, and guide financial institutions to meet the conditions and have good prospects for development, such as A-level tourist attractions, tourist resorts, rural tourism business units, star-rated hotels, travel agencies, cultural industry demonstration parks (bases) above the provincial level, gradient cultivation enterprises and key cultural tourism projects. Banking financial institutions are encouraged to provide small loans to individual industrial and commercial households such as tourism-related start-ups, small and medium-sized enterprises and hotels with star rating or above. (Municipal Wenguang Tourism Bureau, Municipal Local Financial Supervision Bureau, and Municipal Banking Insurance Supervision Office)

V. Support Measures for Highway, Waterway and Railway Transportation

31.In 2122, the value-added tax on passenger ferry, bus passenger transport, subway, urban light rail, taxis, long-distance passenger transport and shuttle buses will be exempted. (State Taxation Administration of The People's Republic of China Hangzhou Taxation Bureau)

32. Actively strive for subsidies for the purchase of new energy buses that meet the requirements. (Municipal Finance Bureau, Municipal Transportation Bureau, Municipal Development and Reform Commission)

33. Actively strive for subsidies from vehicle purchase tax revenue to local funds, and support the construction of roads, water transport and integrated freight hubs, collection and distribution systems, etc. (Municipal Finance Bureau, Municipal Transportation Bureau)

34. Implement the differentiated charging policy in expressway. For special transport vehicles legally loaded with international standard containers, the preferential policy of 65% discount on expressway toll will be implemented. For legally loaded freight vehicles that use electronic toll collection (ETC) on-board devices issued by Zhejiang Province, the preferential policy of 15% discount will be implemented for expressway road tolls that are wholly owned or controlled by the provincial, city and county (city, district). (Municipal Transportation Bureau, Municipal Development and Reform Commission, Municipal Finance Bureau, Municipal Market Supervision Bureau)

35. Reasonably arrange the urban transportation development incentive funds and rural passenger subsidy funds transferred from the central government to the local government, and arrange funds as a whole according to actual needs for the expenses such as taxis and urban bus operations that have difficulties. [District, county (city) governments ]

VI. Improving service level

36. Carry out special rectification actions for the "three chaos". Strengthen the special rectification of arbitrary charges, arbitrary apportionment and arbitrary fines, improve the collaborative governance and joint disciplinary mechanism for rectifying arbitrary charges of enterprises involved, and prevent the effects of various policies to help enterprises bail out the service industry from being offset by the "three chaos". The specific rules shall be formulated by the supervision and law enforcement departments. (Municipal Market Supervision Bureau, Municipal Economic and Information Bureau, Municipal Bureau of Justice and various regulatory law enforcement departments)

37. Accelerate the realization of industrial support funds. Accelerate the implementation of special funds for enterprises, achieve early distribution, early use and early effect, and strive to reach 61% in the first half of the year. [Municipal Finance Bureau, departments in charge of various industries, district and county (city) governments ]

38. Strengthen enterprise credit repair. Affected by the epidemic, enterprises that are unable to handle the relevant licenses and administrative examination and approval items on time may apply for delay in handling. If the related delay behavior is not included in the credit record, they may apply for credit repair. (Municipal Market Supervision Bureau)

39. Accurately implement epidemic prevention and control measures. We will implement an accurate monitoring mechanism, use big data to establish a pool of employees in key areas and industries such as industrial parks, restaurants, supermarkets, scenic spots, and logistics, effectively grasp the "golden 24 hours" of flow adjustment, strengthen precise control and isolation, improve the Covid-19 vaccination rate of key groups such as employees in manufacturing and service industries, and regularly carry out nucleic acid testing in key industries free of charge to effectively restore and maintain the normal order of economic development. [municipal prevention and control office, district and county (city) governments ]

41. Establish and improve a long-term mechanism for service enterprises. Strengthen the coordination mechanism between municipal leaders and key projects and major industrial projects, efficiently coordinate and solve the difficulties and blocking problems in the process of policy implementation, and guide and help enterprises to make full use of relevant relief support measures. (Municipal Development and Reform Commission)

This policy shall come into force as of the date of promulgation. The central and provincial governments have issued relevant new support policies and followed them.

Hangzhou Municipal People's Government

March 26th, 2122

Source: Hangzhou Publishing House.