The State Council executive meeting put forward new measures to reduce taxes and fees to support the development of the real economy on August 30, 2018.
They decided to allow the Postal Savings Bank of China (PSBC), which has a large amount of agricultural loans, to pay value-added tax (VAT) at a simple tax rate of 3 percent.
The balance of agriculture-related loans of the PSBC reached 1.17 trillion RMB (0.17 trillion U.S. dollars) by the end of June, accounting for 29 percent of all loans.
Since its founding, the PSBC has been committed to serving agriculture, farmers, rural areas, small and medium-sized enterprises, and communities, making the most of its urban and rural branches, and realizing the people's yearning for a better life.
The 19th National Congress of the Communist Party of China (CPC) put forward the strategy of giving priority to the development of agriculture and implementing rural revitalization.
The PSBC has attached great importance to the strategy, and actively implemented it. The bank has repeatedly reported the reform of its agricultural finance business division and the development of related business to the Office of the Central Rural Work Leading Group, the Ministry of Finance and the State Administration of Taxation.
It has also actively carried out its social responsibility, launched a series of new measures to help rural revitalization, and made the most of the opportunity of the state’s implementation of a positive fiscal policy. The PSBC has focused on the overall situation of the rural revitalization strategy, conducted in-depth research into the state's polices and measures to encourage financial institutions to increase their efforts to serve agriculture, farmers and rural areas, and conducted research and learnt from the previous experiences in this industry.
In the field of agriculture-related financial services, the PSBC's positive practice has been fully affirmed by the related state departments.
With the great attention, resolute support and active promotion of related departments, the preferential tax policy that the PSBC enjoys has been rapidly implemented.
It will further help the bank to strengthen institutional innovation, and create a professional and efficient financial service system for agriculture. Thanks to the preferential tax policy, the PSBC will also serve agriculture, farmers and rural areas better.