• What does “those” refer to?

Hi!
I read the following in a TOEIC book:

"The state government is planning to revise existing regulations for small businesses. At present, these companies are burdened by high taxes and requirements that are more (07) ______ than those of other states. Beginning next month, small businesses will pay lower permit fees. …



07.

(A) restrictive

(B) restrict

(C) restrictively

(D) to restrict


(Answer: A) ((Hacker's TOEIC Start: , P. 353))"

My question is:



What does “those” in the above sentence refer to?



(W) The companies

(X) The high taxes and requirements

(Y) The taxes and requirements

(Z) The requirements



I think it refers to “the companies” because the original sentence can be analyzed into the following:

“At present, these companies are burdened by high taxes and requirements that are more restrictive than the companies of other states (are burdened by high taxes and requirements).



What do you think? Am I right?


Thanks in advance.