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The State Council recently issued a document requiring all localities and relevant departments to further increase fiscal and tax support for small and micro enterprises, to ease the financing difficulties of small and micro enterprises, to promote innovation and development of small and micro enterprises and structural adjustment, and create a favorable environment conducive to the development of small and micro enterprises. This "Opinions of the State Council on Further Supporting the Healthy Development of Small and Micro Enterprises" consists of eight aspects, a total of 29 specific measures.

Due to the complicated and volatile economic situation at home and abroad, the current small and micro enterprises are still faced with such problems as large operating pressure, rising costs, difficulties in financing, and heavy emphasis on taxes and fees. The "Opinions" clearly stated that all levels of government and relevant departments must increase support to help small and micro enterprises boost confidence, operate steadily, increase profitability and develop staying power.

The Opinions require that governments at all levels and relevant departments further implement various preferential tax policies that support the development of small and micro enterprises. Among them, through the increase of value-added tax and business tax threshold; to extend the corporate income tax policy for small-scale low-profit enterprises by half, and to extend the scope by the end of 2015; to include the technical services platform of the eligible national SME public service demonstration platform into the current technology. Develop tax incentives for imports of imported products; speed up the promotion of business tax for expropriation of value-added tax pilots, and gradually solve the issue of double taxation of business tax in service industries, etc., to increase fiscal and tax support for small and micro enterprises.

In addition to supporting taxation, it will continue to improve financial support policies. The "Opinions" proposes that the total size of funds will be expanded from 12.87 billion yuan to 14.17 billion yuan in 2012, and will increase year by year, highlighting the focus of funds use, and tilting toward small and micro enterprises and the central and western regions. At the same time, the National SME Development Fund has been established in accordance with the law. Continued reductions and eliminations have been made to eliminate various non-compliant charges. Government procurement will support the development of small and micro enterprises.

The Opinions require that governments at all levels and relevant departments should further implement various financial policies that support the development of small and micro enterprises. Among them, the growth rate of loans to small and micro enterprises by banking financial institutions is not lower than the average growth rate of all loans. We will work to ease the financing difficulties of small and micro enterprises by accelerating the development of small financial institutions, broadening financing channels, and strengthening credit guarantee services for small and micro enterprises.

The "Opinion" specifically pointed out that it is necessary to strengthen public services for small and micro enterprises. By 2015, we will support the establishment and improvement of 4,000 public service platforms for small and micro enterprises, focusing on cultivating and demonstrating public service demonstration platforms for small and medium-sized enterprises in 500 countries, supporting the technological transformation of small and micro enterprises, and enhancing innovation capabilities and business management levels. Micro-enterprises create a good environment for development.

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