On May 26, the reporter learned from the Sichuan Provincial Tax Service, State Taxation Administration, that in the first quarter of this year, the province's tax and fee preferential policies aimed at supporting scientific and technological innovation and the development of the manufacturing industry led to a cumulative reduction in taxes and fees and tax rebates amounting to 15.54 billion yuan. Specifically, manufacturing taxpayers benefited from 10.51 billion yuan in tax and fee reductions and tax rebates, which accounted for over 60 percent of the total amount.

Li Jianjun, Dean of the School of Public Finance and Taxation at Southwestern University of Finance and Economics, analyzed that China's structural tax and fee reduction policies are evolving from "inclusive support" to "targeted incentives". He highlighted that through a series of policy tools, such as the additional tax deductions for research and development (R&D) expenses and the additional value-added tax (VAT) credits for advanced manufacturing enterprises, a virtuous cycle of "R&D investment – technological breakthroughs – tax-driven support" has been established. Data shows that in the first quarter, 2,856 enterprises in Sichuan benefited from the additional VAT credit policy for advanced manufacturing, marking a 7.1 percent year-on-year increase. The total tax reduction was 1.062 billion yuan, among which the three cities of Chengdu, Deyang and Mianyang accounted for 68.2 percent of the total policy dividend.

"Additional VAT credits for advanced manufacturing enterprises and additional R&D expense deductions in corporate income tax are the most widely utilized and directly beneficial incentive policies enjoyed by advanced manufacturing enterprises." A relevant person in charge of the Fucheng District Office, Mianyang Tax Service, State Taxation Administration, stated that these policies cover the entire innovation cycle and workflow of enterprises, from R&D investment to equipment renewal and technological transformation, effectively reducing enterprises' R&D costs and accelerating the application of their innovative outcomes.

Since Sichuan unveiled its action plan for accelerating the intelligent and digital transformation of the manufacturing industry last year, the R&D investment intensity in the province's manufacturing sector has increased to 2.8 percent. In this regard, tax authorities have closely focused on the main goal of supporting the "intelligent and digital transformation" of the manufacturing industry, using tax big data to identify eligible enterprises for precise policy delivery and providing differentiated, personalized guidance services. In the first quarter, the tax authorities carried out a total of 17 batches of precise policy deliveries related to supporting scientific and technological innovation and manufacturing development, reaching 6,239 business entities across all batches.