The provincial government of Yunnan in southwest China has lately
announced to open telecom, banks, insurance, etc. to foreign
investors.
By then, investment
in foreign trade, tourism, retailing, consultancy, transportation,
and some other service sectors will also be permitted, according
to the announcement.
Furthermore, in
a bid to achieve the goal that the contracted foreign capital
in the province and the capital actually used by the end of
the "10th Five-year Plan" will double that of the
past five years, Yunnan will offer more preferential policies
on tax collection and land-use to foreign investment.
The foreign invested
enterprises engaging in industries encouraged by the State
will enjoy a cut of 15-percent of enterprises income taxes
in Yunnan within a certain period. Enterprises run by ethnic
autonomous units, upon the approval of the provincial government,
will have their enterprises income taxes cut or exempted regularly.
Newly founded enterprises of communications, electric power,
water conservancy, post, radio and video, etc. will be exempted
from taxes within two years and have their taxes halved in
the third year. To protect the eco-environment and encourage
the return of land to forest or grassland taxes will be exempted
within 10 years on the produces harvested from the agriculture
and pastureland. The land-use for the purpose of construction
of national and provincial highways will be free from taxes.
Moreover, for industries and foreign invested sectors encouraged
by the State as well as industrial projects of superiority,
to import equipment of advanced technology for their own use
will be exempted from tariff and VAT except for commodities
absent from duty-free treatment as stipulated by the State.
(People's Daily
06/04/2001)
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