CPPCC members propose preferential tax policy in Nansha

As one of the three areas of the Guangdong (China) Pilot Free Trade Zone, Nansha has gained less policy support.

To address this, a total of 101 members of the National Committee of the Chinese People's Political Consultative Conference have submitted a proposal to the CPPCC National Committee during this year's two sessions, noting that Nansha should also enjoy the same preferential tax policy as the other two areas of the Guangdong Pilot FTZ, namely the Qianhai and Shekou area in Shenzhen and Hengqin New Area in Zhuhai.

Mei Hing Chak, president of Heungkong Group, as well as Kenneth Fok Kai-kong were also among the members who submitted the proposal.

The proposal noted that all three areas of the Guangdong Pilot FTZ should enjoy the same preferential tax policy for local companies and therefore the corporate income tax rate in Nansha should be lowered to 15 percent from its current 25 percent.

The number of companies in the Qianhai area was 175,000 in 2018 and the number in Hengqin was 461,000, much higher than that in Nansha in terms of the geographic density of companies.

As a result, the tax revenue of Nansha was 3.9 billion yuan ($546.4 million) in 2018, lower than Hengqin's 18.1 billion yuan and Qianhai's 44.6 billion yuan.

Members noted that the disadvantages in Nansha's preferential tax policy has greatly affected its competitiveness in attracting advanced industries and companies, as well as limited the rapid economic development of the area.

In addition, members said that the preferential tax policy can be promoted to the Guangdong-Hong Kong-Macao Greater Bay Area at an appropriate time.