92% of Tibet Merchants is Free of Tax

There are about 48600 merchants are free of the tax with the favorable policy of duty free. The total number of the tax exemption is more than 120 million RMB in the whole year. For example, if you manage a store in Tibet Region with the income of more than 10 thousand RMB per month, then more than 1000 RMB you need to tax per year. Since the implement of the favorable policy of duty free, the number of more than 1000 RMB is free of tax from this month.

Due to promote the development of Tibet economy, the Tibet Government increases the threshold of the value-added tax and the business tax, which would be implemented from the 1st November. Thus 48600 merchants (almost 92% of the total number) would free of tax from then on.

92% of Tibet Merchants is Free of Tax – the Non-public Economy

The non-public economy of Tibet Region has become the important part accounting for 80% of the total number of revenue. Consists of the individual economy, the private economy and the foreign economy, the non-public economy has made a significant contribution to increase the employment opportunities, promote the local financial revenue and develop the market economy.

92% of Tibet Merchants is Free of Tax – Increase threshold of value-added tax and business tax

On the 1st November, the threshold of value-added tax and the business tax of individual business will be increased to 20 thousand RMB, while the evaluation criteria of the ordinary taxpayer will rise to 120 million RMB. The business tax of purchasing tricholoma matsutake and the cordyceps sinensis will be cancelled. The business tax of entertainment business will be decreased to 5% from 10%.

92% of Tibet Merchants is Free of Tax – Increase the Criteria of Ordinary Taxpayer

Before the reformation of the evaluation criteria of ordinary taxpayer, the national handcraft industry of Tibet Region is hard to get the special VAT invoices, which stressed the burden of people. Thus a series of measures of reducing the burden of taxpayer have been taken to assure of the development of economy of Tibet Region.

92% of Tibet Merchants is Free of Tax – Reduce Tax Rate of Entertainment Business

Since 1994, the tax rate of entertainment business was implemented around 10%. While Tibet economy has been quickly promoted and the quality of life has been gradually improved, the entertainment business has been restricted by the high tax rate of 10%. Due to promote the development of culture and economy of Tibet Region, the National Tax Bureau of Tibet Region decreased the tax rate of entertainment business to 5% from 10%.