MOFCOM Confirmed Package Policies on National Economy Reigniting
According to the press conference on Mar 28, MOFCOM confirmed that aiming to fully reignite the national economy from the total Covid-19 shutdown, MOFCOM determined to reduce the electricity price by 5%, implement off-peak season natural gas pricing, free the high-way transportation, give subsidy and rebate to small-to-medium scale enterprises. The package policies were set to take effect from February to June 2020. Besides, MOFCOM also added that from March to May, small taxpayers will enjoy 1% VAT tax rate from the normal 3%, and those in Hubei Province will be exempted.
China government and ministries released glorious economy reigniting policies since February to help the national economy back to normal from Covid-19 shutdown, and the national industrial and commercial activities had resumed above 90% of the average level by mid-March, according to NDRC and MOFCOM’s announcement.
SCI has anticipated a retaliatory rebound of natural gas and LNG consumption in Q2, 2020 in line with the recovery of the national economy, and with the reduced piped gas price and the lowering LNG import cost, it is expected that the fundamental supply will also remain sufficient from home and abroad. Together with the policy stimuli, SCI estimates China’s natural gas and LNG market will be much optimistic against the world recession under Covid-19 pandemic, and the monthly growth rate may exceed 8%-9% even in the off-peak seasonQ2 and Q3 of 2020.
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