Hainan has coordinated 36.2 billion yuan in fiscal funds to support urban renewal in the past three years.

China News Service, Haikou, November 4 (Reporter Wang Xiaobin) At a special press conference on the "Hainan Free Trade Port City Renewal Regulations" held on November 4, Pang Xuebin, deputy director of the Economic Construction Division of the Hainan Provincial Department of Finance, introduced that from 2023 to 2025, the cumulative fiscal coordination of Hainan Province will be over 100%. Various types of funds, including special treasury bonds, central budgetary investments, local government special bonds and provincial financial resources, are about 36.2 billion yuan, focusing on ensuring people's livelihood projects such as urban underground pipe network construction, renovation of old communities, elevator renewal, and protection of traditional historical and cultural blocks.

Pang Xuebin said that funding security is the key to sustainable advancement of urban renewal. Focusing on the requirements of the "Hainan Free Trade Port City Renewal Regulations", the Provincial Department of Finance is working hard to build a package guarantee system of "fiscal fund guidance, special bond leveraging, tax and fee policy cost reduction, and multi-tool coordination."

In terms of fiscal fund co-ordination, funds will focus on public security, people's livelihood security and infrastructure to make up for shortcomings. In addition to the above-mentioned key guarantee projects, provincial finance will continue to expand funding supply channels, tilt limited financial resources towards inclusive urban renewal projects, and build a solid bottom line of funding for people's livelihood projects.

In terms of leveraging the role of special bonds, Hainan adheres to government guidance and market operation. On the premise of strictly adhering to the bottom line of government debt risks, it gives priority to supporting urban renewal projects that have stable returns and can achieve financial balance. Pang Xuebin introduced that since this year, Hainan has issued a total of more than 3.4 billion yuan in local government special bonds for urban renewal projects.

In addition to direct financial support, preferential tax and fee policies are also an important part of reducing project implementation costs. Hainan will cooperate with taxation and other departments to implement various tax incentives: on the one hand, it will fully implement national inclusive policies and exempt urban land use tax, stamp duty, and land value-added tax on shantytowns, urban village renovation, and public rental housing construction and operation projects; on the other hand, it will fully release the unique policy dividends of the Hainan Free Trade Port and levy corporate income tax at a reduced rate of 15% for qualified industrial enterprises such as "municipal infrastructure," "urban quality improvement and housing security," and "smart city construction."

According to Pang Xuebin, qualified enterprises can also enjoy one-time deductions or accelerated depreciation and amortization policies for newly purchased assets. Workers related to the urban renewal industry can also enjoy the exemption of the actual tax burden of personal income tax exceeding 15%.