Qualified enterprises in the Pingtan Comprehensive Pilot Zone (PCPZ) will be levied a reduced income tax of 15 percent for the next seven years, according to the Ministry of Finance (MOF) and the State Administration of Taxation (SAT) on March 27.

As many as 127 industries and businesses in the five main sectors of public facilities management, eco-environment protection, agricultural and marine industries, service sector, as well as high-tech industries qualify for the latest tax preferential policy, according to the two agencies.

A total of 74 high-tech industries make the list, which took effect on Jan 1, 2014, and will be valid until Dec 31, 2020. Service sector and public facilities management come in second and third place, with 18 and 16 industries, respectively. Agricultural and marine industries account for 10, and the remaining nine are from the eco-environment protection sector.

Enterprises engaging in any of the applicable businesses, and with at least 70 percent of its gross revenue coming from the listed business, are eligible to enjoy the 85 percent income tax deduction, the notice says.

The hefty tax cut will boost Pingtan's economic diversification and build a competitive industrial system led by high-tech industries and service sectors. It will also help integration of major industries, promote high-end, energy-saving, low-carbon industries and speed up cross-Straits industrial connections, according to insiders.

The central government has been attaching great importance to Pingtan, which was established in 2009 as the mainland's first pilot zone opening up to Taiwan.

The formation of an industrial development guidance catalogue and an 85-percent income tax cut for Pingtan's enterprises was first brought up in a development plan by the State Council in 2011.

The National Development and Reform Commission approved the industrial development guidance catalogue on Feb 28, 2013, encouraging Pingtan to develop 350 industries and businesses in seven categories: public facilities management, eco-environment protection, agricultural and marine industries, service sector, high-tech industries, tourism and social industries.

Edited by Chen Zhilin and Nelly Min