According to the Zhejiang Provincial Tax Service affiliated to the State Taxation Administration, Zhejiang-based companies saved 187.93 billion yuan ($29.02 billion) between January and November last year, as a result of new policies for tax and fee cuts.

The total savings in this regard is expected to be nearly 200 billion yuan throughout 2020.

As many companies became cash-strapped due to the impacts caused from the COVID-19 pandemic last year, the central government strived to slash or exempt taxes and fees to alleviate their financial burdens.

For example, the payment for employees' social insurance, a significant part of operating expenses for employers, particularly small- and mid-sized businesses, was largely waived by the Chinese government in 2020.

Zhejiang's taxation authorities reassured that every market entity in the province would benefit from these policies as much as possible. Multiple rounds of taxation tutoring and non-contact taxation services were conducted all over the province throughout 2020, ensuring that all companies were fully and immediately informed of all the favorable policies.

Tax cuts and fee reductions have stimulated the economy and brought even more corporate taxpayers. In 2020, Zhejiang registered more than 400,000 new taxpaying private corporations.