(Yicai) Sept. 5 -- China’s finance and taxation authorities have brought out a new broader preferential policy on stamp duty that is aimed at better supporting corporate restructurings.

The latest policy expands corporate stamp duty relief to also cover reorganizations, mergers, bankruptcy liquidations, and the reform of public institutions, according to finance ministry official. It also now embraces private companies, a tax expert told Yicai.

The preferential policy first introduced by the ministry and the State Taxation Administration in 2003 was limited in its scope.

The fact that all eligible enterprises and public institutions can now benefit from the policy shows that China is promoting fairness and uniformity, the official noted. It will stimulate corporate vitality and dow away with unnecessarily restrictive conditions to promote the creation of a unified national market, they added.

The changes will also improve the precision and effectiveness of China’s overall tax policies, the person pointed out.

Editor: Futura Costaglione