Ministry vows to bring in more large-scale tax cuts
Actions should improve forward-looking, flexibility and effectiveness of policies, as downward pressure increases on the Chinese economy
In the face of downward pressure on the economy, the central government has made it clear that the proactive fiscal policy should be more active, Xinhua news agency reported.
Finance Minister Liu Kun said to make the proactive fiscal policy more active doesn’t mean to engage in a strong stimulus. Instead, the government should improve the forward-looking, flexibility and effectiveness of policies, so as to play a bigger role in expanding domestic demand and restructuring the economy.
In the next step, the active fiscal policy will continue to fully implement the tax and fee reduction policies that have been introduced. Meanwhile, the Ministry will also study more large-scale tax reductions and more obvious measures to reduce costs for enterprises.
In addition to the policies introduced at the beginning of this year, which aims for a total tax and fee reduction of 1.1 trillion yuan (US$160 million), a series of measures to promote the development of the real economy and support scientific and technological innovations were introduced later.
Thus, it is estimated that the scale of tax and fee reduction for the whole year will exceed 1.3 trillion yuan.