China’s state planner on Friday issued rules to promote a faster recovery of the service sector from the effects of the Covid-19 pandemic, including providing tax breaks for the food, retail, tourism and food sectors. aviation.
The National Development and Reform Commission (NDRC) also said it would guide online food delivery platforms to reduce catering companies’ operating costs via lower service fees or commissions. The announcement sent the shares of Meituan, one of the main players in the sector, plummeting more than 10%.
China’s vast service sector, which has been slow to recover from the Covid pandemic, is more vulnerable to sporadic outbreaks of the disease in the country, especially at a time when China follows a zero Covid approach to quickly eliminating hotspots of the virus. , regardless of the economic cost.
The government has asked for greater financial support from local governments to retail companies to carry out routine and free Covid-19 tests on their employees and will support banks to reasonably increase the supply of credit to the tourism sector, the NDRC said.
China will also stop collecting value-added tax from airlines in 2022 and will continue to subsidize major routes and small airports, according to the NDRC.
The state planner also said he would encourage internet platforms to grant preferential service rates to catering companies in areas affected by the pandemic. Meituan and Alibaba, which own food delivery platform Ele.me, did not immediately respond to requests for comment.
Source: CNN Brasil
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