A Finance Ministry official promised to give the most fair and most transparent tax incentives to small and medium sized enterprises (SMEs) .

Zhou Laizhen, vice director of the State Equity & Corporate Finance Department, Finance Ministry, said at the 2nd Sino-France SME Fair in Guangzhou that financial support, tax policy and government procurement would give comprehensive support to SMEs.

He disclosed that the government was considering adjustment of the pre-tax discount rate of bad loan provisions of financial enterprises to encourage their service for SMEs.

Development fund for SMEs will be available in line with the Law on Promoting Small and Medium �CSized Enterprises. In the government procurement, SMEs will secure certain share of government orders through bidding.

Ou Xinqian, Vice Chairman of the National Development and Reform Commission, said at the same occasion that the government would reduce tax burdens of SMEs, guide direct investment, tap more financing sources and encourage public investment. He added China would have credit guarantee system in place.

The number of China's SMES, as the major pillar of the private economy, has exceeded 3.6 million. They contribute nearly 60 percent of the country's GDP with their final products and services and offer more than 75 percent of job opportunities in urban areas.

By People's Daily Online