Member ID:
Stay logged in for 30 days
Forget Your Password?

login CCFGroup App

Economy | Time: Mar 18 2019 5:34PM
Steep corporate tax cuts to help ensure steady growth: economist
Text size
BEIJING - China's sustained efforts to lower the corporate burden will help stabilize employment, investment and growth expectations, said Bai Jingming, vice-president of the Chinese Academy of Fiscal Sciences.

Following colossal tax and fee cuts of around 1.3 trillion yuan ($194 billion) in 2018, China will reduce the tax burdens and social insurance contributions of enterprises by nearly 2 trillion yuan this year.

Small and micro companies, which provide the majority of jobs, would be the major target of such cuts in 2019, showing a clear pro-employment policy tendency, Bai told the People's Daily on Monday.

This year, China will reduce the current value-added tax rate of 16 percent for manufacturing and other industries to 13 percent, and lower the rate for such industries as transport and construction from 10 to 9 percent.

A universal tax cut will greatly ease the tax burden of companies in purchasing fixed assets like machinery equipment and save costs for equipment manufacturers, resulting in more room for investment, Bai said.

The massive corporate tax cuts this year showcased the central government's efforts to inject more energy into economic development and to make sure market entities receive benefits, which will help stabilize market expectations of the economy, according to Bai.

Bai believes the move will unleash Chinese people's unlimited potentials in innovation and creation and boost the nation's high-quality development.

China's economy, the second largest in the world, expanded 6.6 percent to exceed 90 trillion yuan last year. The growth target for 2019 was set at 6-6.5 percent.

Source: Xinhua
Related Articles
More steps planned to ease investment hurdles, say officials
China to further streamline customs clearance
China to cut retail fuel prices
China sees record-high coal output growth in July
Coastal provinces record robust half-year growth
China's fiscal revenue up 3.1%
Online retail sales up by 17.8% in first half
Real meaning of opening-up, rebalancing
China's FDI inflow rises 7.3% in Jan-July
China's bulk commodity market shrinks in July
PTA: H1 2019 market review and H2 market forecast
Brief analysis on the annual report of listed companies in ...
Polyester market in 2019: H1 2019 market review and H2 ...
Operation of China's textile and clothing companies in 2018
Rayon yarn market change on vortex-spun yarn operation
Development of nylon downstream sectors