China to cut $63 bln in value-added tax in 2018

APD NEWS

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China will offer a tax reduction package amounting to 400 billion yuan (about 63 billion US dollars) this year to both domestic and foreign enterprises, according to a State Council executive meeting chaired by Premier Li Keqiang on Wednesday.

The central government will cut value-added tax rate for the manufacturing sector to 16 percent from 17 percent, starting from May 1. The tax rate for the telecommunications, transportation, construction and farm produce sectors will also be cut one percentage point to 10 percent.

It will raise the threshold for enterprises to pay taxes to five million yuan in sales revenue per year.

It will also return part of the taxes paid to enterprises in advanced manufacturing, modern services, and power grid sectors.

The move is seen as a way to boost high-quality development.

Inclusive finance

The government will make further arrangements in inclusive finance to provide better financing to small and micro businesses, rural businesses and innovative start-ups.

It will set up a national financing guarantee fund, with initial funding no less than 60 billion yuan. It is estimated that the fund will support relevant loans of 500 billion yuan in the next three years.

(CGTN)