The State Council officially released on September 22 the State Council on further promote the development of SMEs, Industry and Information Technology Minister Li Yizhong said, a number of substantive measures will give fresh impetus to SME development.
The view that the state will increase tax support for SMEs efforts since January 1, 2010 to December 2010, 31, on the taxable income of less than 30,000 yuan (3 million) small profit enterprises, their income reduced rate of 50% included in taxable income and pay enterprise income tax rate of 20%. Li also pointed out that some of the difficulties small and medium enterprises to postpone paying social insurance premiums or reduce the payment rates for these preferential policies originally stipulated to the end of 2009, can now be extended by one year to the end of 2010, you can also give some subsidies.

The current economic crisis is global spread of hardware rely on export-oriented manufacturing has also been a great influence, many hardware companies facing difficulties. Hardware companies can expand profit margins, will help to improve the export of hardware companies through tax cuts, especially in the hardware business competitiveness, to improve the situation faced by the hardware companies to help these companies weather the storm.

Jia Kang, director of the Institute of Fiscal Science, said that tax cuts for small enterprises with low profits, embodies its tax breaks, to make it more affordable means of support specific absolute value is not a business will at best compared to the original $ 2,000 to $ 3,000 of tax burden decreased. However, at the edge, this is indeed a real discount.

And tax cuts to low-profit enterprises can also preserving jobs and promoting growth. With the PPI rise, leading to the production costs of enterprises, particularly in the production of downstream hardware. These in the hardware business in a highly competitive environment, and with the rising cost of production to raise prices, only to squeeze the profit margins of the original; Once the companies can not continue to survive, will lead to a huge number of business failures