China cuts taxes to spur economic reform
Will reduce import duties on energy, raw materials and tax on business activities.
BEIJING: China’s finance minister says the government plans tax cuts this year to spur domestic consumption and economic reforms.
Xie Xuren said changes in the tax system should decrease charges on companies, adding that the government will also reduce import duties on energy, raw materials and taxes on some business activities.
He said the changes are aimed at raising the after-tax income of companies and the Chinese public to encourage more consumption.
The government is trying to boost consumer spending and other domestic consumption to reduce reliance on exports and investment.
Last year, Beijing changed its personal income tax system to exempt tens of millions of workers by raising the minimum tax paying threshold.
©The Canadian Press