Shanghai announces measures to help businesses affected by COVID-19

China's economic hub Shanghai on Tuesday announced 21 measures to help enterprises affected by COVID-19 emerge from the pandemic gloom.

Preliminary estimates show that tax-related measures alone can reduce the burden on related industries and enterprises in Shanghai by about 140 billion yuan (about 22 billion U.S. dollars) in 2022.

"The introduction of the measures aims to fully implement China's relevant policies to assist pandemic-hit companies. The measures also aim to provide stronger support for those affected by Shanghai's latest virus resurgence," said Ruan Qing, deputy director of the Shanghai Municipal Development and Reform Commission.

The measures concerning tax rebates target businesses with operating fund shortages. "Last year, more than 3,000 enterprises in Shanghai enjoyed tax rebates, and that number is expected to reach 250,000 this year," said Pang Wei, deputy head of the Shanghai municipal tax service.

Thanks to these measures, small and micro enterprises and self-employment businesses in all sectors could be exempted from part of their rents in 2022.

In rendering the support, priority has been given to retail, catering and other industries that were hit hard by the latest resurgence.