(Yicai) Feb. 13 -- The tax cuts, fee reductions, and tax refunds resulting from China's supportive policies for science and technology innovation and the development of the manufacturing industry totaled CNY2.63 trillion (USD366.8 billion) last year.

Among them, CNY1.1 trillion were value-added tax credits and refunds for advanced manufacturing enterprises, and CNY806.9 billion (USD110.6 billion) were tax rebates from policies such as deductions for additional research and development expenses, according to data released by the State Taxation Administration yesterday.

Moreover, CNY466.2 billion were from policies including the 15 percent corporate income tax for high-tech enterprises and purchase tax exemptions for new energy vehicles, CNY132.8 billion were VAT credits for integrated circuit and industrial machine companies, and CNY114 billion were for equipment upgrades and technical improvements.

Victory Giant Technology received CNY136 million (USD18.6 million) in deductions for additional R&D expenses and over CNY12 million (USD1.6 million) in tax benefits for high-tech enterprises in the first half of last year, said Chen Tao, chairman of the high-precision printed circuit board manufacturer. These funds were reinvested in R&D innovation and a digital factory, creating a positive expansion and efficiency improvement cycle, Chen explained.

The tax deduction policies have significantly enhanced China's technological innovation capabilities, according to the STA.

The sales revenue growth of China's high-tech industries outpaced the national average by 9.6 percentage points last year, with revenue from technology transfer services and core digital economy industries soaring 27 percent and 7.1 percent, respectively, from the previous year. Enterprises' spending on digital technologies climbed 7.4 percent, indicating steady progress in digital-physical integration.

The sales revenues from the equipment manufacturing, digital product manufacturing, and high-tech manufacturing industries rose 6.2 percent, 8.3 percent, and 9 percent, respectively, last year from 2023.

In the advanced manufacturing sector, the sales revenues from computer manufacturing, communication and radar equipment manufacturing, and intelligent equipment manufacturing jumped 14 percent, 19 percent, and 10 percent, respectively, reflecting steady progress toward high-end and intelligent manufacturing.

The STA will continue to implement and refine structural tax reduction policies focusing on supporting technological innovation and manufacturing development, facilitating the growth of new productive forces, and promoting China's high-quality economic development, according to a senior official.

Editor: Futura Costaglione