Maoming has launched a series of preferential tax policies to help its aquatic products enterprises resume production and reduce the impact caused by the outbreak of the novel coronavirus (COVID-19) epidemic.

Maoming currently boasts an aquaculture area of 37,500 hectares and 206 aquatic products processing enterprises. It has a complete industrial chain integrating breeding, processing, and sales. In 2019, the city's total output of aquatic products reached 922,100 metric tons, with a total output value of 8.4 billion yuan ($1.19 billion).

However, this year's sales of aquatic products in Maoming have fallen sharply due to the delayed delivery of export orders and limited domestic sales channels caused by the COVID-19 epidemic.

Preferential tax policies, including exemption of added-value taxes, reduction or exemption of social insurance, and tax reimbursement for exports, have been launched by the city to help aquatic products enterprises.

The sales revenue of Guangdong Guanli Marine Biological Co Ltd in the first quarter of this year saw a decrease of nearly 80 percent due to the impact of the COVID-19, according to Wang Mingjun, the company's legal representative.

Officials of the tax bureau of Maoming visit Jianguo Ecological Agriculture Development Co Ltd to explain relevant preferential tax policies. [Photo by Ma Jieqing and Li Wenting/mm111.net]

"Through these policies, my company invested 4.36 million yuan into research and development and can receive a reduction in income taxes of 1.09 million yuan," said Wang. "The social insurance payments have also been reduced by 106,200 yuan. It is estimated that a total of 265,600 yuan in social insurance payments can be exempted by the end of June."

Aquatic products export enterprises in Maoming can enjoy tax reimbursement for exports. In the first quarter of this year, a total of 101.21 million yuan of export tax rebates were granted to local aquatic products enterprises.

"We have received the export tax refund of 16.69 million yuan," said Wu Jin, financial manager of Huazhou Xinhai Aquatic Products Co Ltd. "The money came just in time to cover the company's expenses and minimize the impact of the COVID-19 outbreak."

In addition, Maoming has also tried to help aquatic products enterprises expand their domestic market by pairing enterprises through the tax big data platform.

Guangdong Universal Aquatic Food Co Ltd is one of the many companies that have benefited. From January to March, the enterprise's domestic sales reached 33 million yuan, up 113 percent year-on-year, while its exports exceeded 66 million yuan, increasing by 73 percent year-on-year.