Guangzhou's government is out to attract the green dollar — or yuan — with tax breaks for companies working in the green sector.
Guangzhou announced that smaller companies engaged in energy saving, environmental protection, waste treatment or other cleantech projects are eligible.
The tax breaks include waiving 100 % of corporate income tax for the first three years, and 50% waived for the following three years.
Guangzhou, whose metropolitan area houses 10m people, is the economic centre of the Pearl River Delta and one of the richest Chinese cities. Al that economic development has brought big environmental problems, not least traffic congestion and pollution.
To address the former, the city has deployed an an “intelligent” traffic management system — see this story — while to counter pollution, the government has baned motorcycles in the urban areas and plans for all buses and taxis to be LPG-fueled by 2010.
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