Chinese Premier Li Keqiang. Li presided over a meeting on Wednesday, during which the State Council announced new tax cuts to boost the economy. Photo: AFP
Chinese Premier Li Keqiang. Li presided over a meeting on Wednesday, during which the State Council announced new tax cuts to boost the economy. Photo: AFP
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China announces US$55.2 billion in tax cuts

The tax reforms will begin this July, according to a statement released following the State Council’s Wednesday meeting

April 20, 2017 9:42 PM (UTC+8)

China has announced new tax reforms beginning this summer that will reduce the tax burden on corporations and consumers by US$55.2 billion, according to a government statement.

The statement, released following a State Council meeting on Wednesday, said the reforms will streamline the value-added tax (VAT) structure and reduce VAT on agricultural products and natural gas from 13% to 11%.

The taxable earnings ceiling for small enterprises to receive a 5% discount has been raised to 500,000 yuan from the current level of 300,000, and tax breaks will also be extended to startups and small and medium-sized enterprises in the tech sector.

The new reforms, along with last year’s business tax overhaul, will result in total reduction in taxes of around US$55.2 billion, according to the statement.

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