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Liangjiang New Area in Southwest China's Chongqing municipality saw 7 billion yuan ($1.1 billion) in tax and fee reductions last year.

On April 1, a new round of value-added tax (VAT) credit refund polices began to take effect. Chongqing Endurance Gas Equipment Co, the first company to apply for the tax refund in Liangjiang, registered sales revenues of 1 million yuan ($156,600) last year, in contrast to its previous level of nearly 10 million yuan, due to the continuous impact of the COVID-19 epidemic.

The company was able to enjoy a 100-percent VAT credit refund under the new policy, which has for the first time benefited small and micro-sized enterprises and manufacturers. Meanwhile, the government has also reduced taxes on research fees for small sci-tech firms.

For qualified enterprises with relatively low operation risks, the taxation department will simplify tax refund review procedures.

Last year, the total output value of industries above a designated size in the new area was 435.45 billion yuan, up 21.5 percent year-on-year.