Guangdong province, which accounts for more than 40 per cent of the nation's overall exports, is to sacrifice government revenue and put it to use as an incentive to exporters to counter the negative impact of the Asian crisis. Among eight key measures, the provincial government will give full corporate profit-tax rebates to state firms that will expand their exports by more than 15 per cent this year. Mainland exporters pay a standard 33 per cent tax on corporate incomes. For those registering 15 per cent export growth, local authorities will also employ government revenue to provide loans at subsidised rates of interest. The measures, carried by the China News Service yesterday, are the strongest so far by mainland authorities in their efforts to reverse a trend of slowing growth. The Central Government has increased tax rebates nationwide on a number of export commodities such as textiles, coal and machinery. Hit by the Asian financial and economic crisis, overall exports from the mainland fell for the first time in almost two years last month. Guangdong has been trying hard to maintain export growth momentum. However, for this year it projects a 15 per cent rate of growth in exports, compared with an annual average increase of more than 20 per cent during the past few years. In the first four months of the year, exports rose by 16.1 per cent year on year, but this rate is expected to slow down in the coming months, hence the stimulative measures. China News Service said the Guangdong government would give full tax rebates on exports, with the money coming from local authority budgets. It said efforts to float exporters on domestic stock markets to raise money for further expansion would also be speeded up. For those firms which process goods for exports, the value-added tax on processing fees would be fully waived. In order to support foreign-invested exporters, Guangdong would ask authorities in Zhuhai, Shantou, Shenzhen and Guangzhou to examine the possibility of allowing foreign firms to enjoy certain favourable central government policies that are extended to mainland-owned exporters. It would also open the foreign trade sector to private firms, the agency said.