In line with China's tax and fee cuts policies, Xiamen is getting busy. It reduces nearly 8.8 billion yuan ($1.25 billion) of tax and fees in the first half of the year. [Photo/VCG]

As China's measures to cut taxes and fees have been running on all cylinders, Xiamen in eastern Fujian province, has been far from idle. It cuts nearly 8.8 billion yuan ($1.25 billion) in taxes and fees in the first half of this year, of which 8.2 billion yuan were tax cuts, data from the Xiamen Tax Service of State Taxation Administration showed recently.

According to the department, at the end of June this year, the deepening of value-added tax reforms in Xiamen involved 111,200 general taxpayers, 1,976 more than in early April. The total net tax cuts from April to June reached 2.95 billion yuan.

Statistics also showed that in the first half of this year, 592 million yuan in taxes were reduced for small and micro enterprises through the general-benefit and structural tax cuts.

Officials said tax and fee cuts not only reduce the tax burden of enterprises, but also encourage businesses to enhance their innovation.

Tech companies can lower their taxable income by deducting an additional 75 percent off research and developmet costs before paying taxes. Through this policy, tax reduction has exceeded 2.5 billion yuan for 3,133 companies in Xiamen, according to official data.

Meanwhile, personal income tax reforms increased the earnings of individuals and boosted their spending, officials added. This year, personal income tax in Xiamen reduced 2.99 billion yuan through June, and a total of 505,000 people in the city enjoyed special additional deductions.