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Premier urges less rent burden on businesses
Updated: April 23, 2020 09:32 english.www.gov.cn

State-owned enterprises, especially those directly under central management, and public institutions such as colleges, universities and research institutes, should take the lead in helping ease the rent burden on micro, small and self-employed businesses in the service sector, Premier Li Keqiang said at the State Council executive meeting on April 21.

“Surveys revealed that renting costs pose a huge challenge for micro, small and self-employed businesses, major contributors to job creation,” Premier Li said. “So we must roll out more targeted and timely measures to help them, especially those in the service sector, survive the current crisis.”

Data from related departments show that rent accounted for a large share of the operating costs for micro, small and self-employed businesses in the service industry, with the figure reaching 50 percent for some self-employed businesses.

The leading role of State-owned enterprises in rent relief will encourage other lessors to do the same, which will not only benefit tenants and lessors, but will be crucial for stabilizing employment and the socio-economic situation, the Premier said.

The meeting deployed a three-month rent exemption in the first half of this year for such firms in the service sector that are renting State-owned property.

Both State-owned and non-State-owned property lessors offering rent relief can be exempt from or pay less property tax and urban land use tax for the current year as permitted by regulations. State-owned banks will be encouraged to extend pledge loans at concessional rates to such borrowers according to their needs, according to the meeting.

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