In January of this year, China launched a series of new preferential tax cuts, including increasing the minimum threshold of VAT from 30,000 yuan in monthly sales to 100,000 yuan for small-scale taxpayers of small and micro enterprises, individual businesses and other individuals. In 2019, it is estimated that there will be 304,800 taxpayers in Nanning enjoying the preferential policy of exempting small and micro enterprises from VAT, accounting for 96.35% of all the small-scale taxpayers. With the implementation of preferential tax policies, individual businesses of Nanning are full of confidence in their future development.
It is reported that Xingning District, in which the Nanning Trade Market is located, is a relatively concentrated urban area for individual businesses in Nanning City. There are more than 24,000 individual businesses in this district, accounting for nearly 30% of the individual businesses in Nanning City. According to statistics, there were 1,217 individual businesses in Xingning District in 2018 reaching the minimum threshold of VAT. After the minimum threshold of VAT is increased from 30,000 yuan of monthly sales to 100,000 yuan, the exemption coverage will be expanded to 99.73%, which will benefit 24,207 individual businesses. In 2019, it is estimated that the tax revenue can be reduced or exempted by about 20 million yuan, which will effectively promote the development of the private economy in Nanning City.