Study on the influence of preferential tax policies on the financial performance of small and medium-sized ceramic enterprises in Jingdezhen

Abstract

In recent years, small and medium-sized enterprises (SMEs) have played a vital role in the rapid development of China's economy, significantly contributing to economic growth, employment, and innovative development. In response to the financial challenges faced by SMEs, the government has implemented a series of preferential tax policies aimed at promoting their development. Jingdezhen, a city renowned for its historical significance in the ceramic industry, prioritizes the growth of small and medium-sized ceramic enterprises. However, the impact of these preferential tax policies on the financial performance of small and medium-sized ceramic enterprises in Jingdezhen remains to be explored. This paper addresses this critical issue by analyzing the influence and mechanisms through which preferential tax policies affect the financially healthy development strategies of Jingdezhen's ceramics sector. Grounded in demand management theory, tax incentive theory, and the optimal tax system, this research employs statistical analysis to examine the implementation of tax preferential policies for SMEs. It finds that tax reductions in Jingdezhen have significantly decreased operating costs for enterprises, fostered innovation in research and development, optimized the business environment, and contributed to stable growth in the scale of market participants.This study identifies several issues in the process of municipal tax reduction and fee reduction in Jingdezhen, including the need for further optimization of tax reduction and fee reduction policies, inadequate implementation by tax authorities, and insufficient understanding of these policies among taxpayers. To address these challenges, this paper proposes enhancements to the overarching design of tax reduction and fee reduction policies, aims to elevate the legal framework governing tax incentives, and advocates for a coherent and continuous policy system. Furthermore, it emphasizes the importance of synchronizing the implementation of tax reduction and fee reduction policies, improving the information management and collection processes, establishing a new collection and management framework, strengthening policy outreach, and optimizing tax service delivery.