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Favorable fiscal and taxation policies should be granted to SARS-hit sectors such as restaurants and hotels, the Ministry of Commerce told local departments yesterday.
It suggested reducing, exempting or delaying their sales tax, city maintenance charges and construction tax or add-on education fees.
The measure is among a series that the ministry has requested for adoption in a notice to local departments. The aim is to explore markets, expand domestic demand and minimize the negative effects of SARS on commerce.
The ministry has requested local departments actively explore urban and rural markets while ensuring market supply of antiseptic and epidemic prevention products.
Efforts must be taken to enhance the commerce sector's capacity of macro control of the market and exploration, competition and risk resistance, it said.
Companies that have been badly hurt by the disease outbreak should be given support to overcome difficulties, reduce losses and maintain growth, it said.
Commercial sales dropped dramatically in the latter half of April following the outbreak of SARS in Beijing but a recent survey of 100 shopping malls across the country by the China Commerce Federation showed the sector to be recovering in May as the year-on-year shortfall is reduced week by week.
Sales of the 100 precincts fell 35.66 per cent year-on-year in the first week of May, 24.39 per cent in the second week and only 14 per cent in the third week.
Consumers mainly purchased food, hygiene and disinfection products in the first week and started to buy garments, physical training and health strengthening equipment and sun products in the third week, according to the survey.
The Commerce Ministry said local departments should help businesses establish a healthy, stable and reliable commodities supply chain and an interest and profit-sharing co-operation and co-ordination mechanism.
They should also supervise and direct companies to build a sanitary and safe consumption environment and make use of the Internet.
The ministry urged companies to explore and supply rural markets to ensure continuous development of the rural economy and social stability.
Local departments must create a safe, smooth, fair and competitive market environment, safeguard the quality of commodities and service standard, and crack down on illegal acts such as counterfeiting.
Food sanitation, quality and safety must be strict to protect people's health, lives and security.
But the ministry warned that enhancing quality, sanitary and safety inspection of commodities to rural areas were not the only major concern.
(China Daily May 29, 2003)
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