Shenzhen's tax reductions for private businesses reach 170 bln yuan in 2018

Tax reductions for private businesses in Shenzhen rose 10 percent year on year to reach 170 billion yuan last year.

A bird's-eye view of Shenzhen. [Photo: VCG]

The figure accounted for more than 70 percent of the city's entire tax reductions for last year.

The private sector plays an important role in the city's economy, contributing around 70 percent of tax revenue.

To encourage the development of the high-tech industry, Shenzhen implemented a series of preferential tax policies, cutting more than 71 billion yuan of taxes last year.

Local authorities said they also worked with multiple banks to provide innovative financial services based on private enterprises' tax-paying credits in order to solve their financial difficulties.

As of September of last year, the number of private enterprises in Shenzhen totaled 1.9 million, accounting for 96 percent of all enterprises.