A boom in a variety of businesses is expected in Pingtan after the implementation of a more favorable tax policy for enterprises.

The policy was officially announced by the Ministry of Finance and State Administration of Taxation on March 27, allowing 127 industries and businesses in five main categories to be levied at a reduced income tax rate of 15 percent.

"I believe more enterprises will come to Pingtan following the preferential policies and form industrial clusters. My company is expected to have more clients in the future," said Fu Xuelin, chairman of a food company involved in aquatic product processing and trade.

The hefty tax cut means enterprises will become more profitable, which is conducive to technology and facility upgrades, said Yang Guangping, chairman of Sunlight Eco-agriculture Development Ltd Co.

"Modern farms and fisheries have reached a comparatively high level in Taiwan. The tax policy will help bring in Taiwan's companies and talent, which is a rare opportunity for local firms to learn and realize a win-win cooperation," he added.

A Butterfly Effect will be created from the tax cut, and boost trading and logistics between Pingtan and Taiwan, said Huang Jishi, financial manager of a passenger shipping company.

Haixia, a passenger ferry owned by the company, will probably see increases in its trips and freight volume, he said.

Edited by Chen Zhilin and Nelly Min