Group 1 - The article discusses tax incentives aimed at supporting the development of the manufacturing industry in China, specifically focusing on the exemption of value-added tax (VAT) for the production and sale of drip irrigation belts and pipes [2][3]. - The VAT exemption applies to taxpayers engaged in the production, wholesale, and retail of drip irrigation belts and pipes, effective from July 1, 2007 [4]. - Drip irrigation products are defined as those specifically designed for agricultural water-saving irrigation systems, meeting national quality standards, and must be sold with regular invoices rather than VAT special invoices [4]. Group 2 - Taxpayers must declare the VAT exemption based on the timing of the VAT liability occurrence and retain relevant documentation for verification [4]. - The exemption can be processed through online and offline methods, including the electronic tax bureau and tax service halls [4]. - The policy is based on the notice issued by the Ministry of Finance and the State Administration of Taxation regarding the VAT exemption for drip irrigation products [4].