It is estimated that tax and fee cuts this year will be greater than 1.3 trillion yuan (US$190 billion), wrote Finance Minister Liu Kun in a commentary published in the Study Times, The Beijing News reported.
The Study Times is a newspaper run by the Central Party School of the Communist Party of China.
At present, the 1.1 trillion yuan in tax and fee reduction policies that were announced at the beginning of the year have been implemented, and a series of measures to promote the development of the real economy introduced in the middle of the year are expected to reduce the burden by more than 1.3 trillion yuan.
Jiang Chao, chief economist at Haitong Securities, believes that in terms of tax cuts for enterprises, there is still a lot of room to improve.
The largest proportion of tax revenue in China’s corporate sector remains the value-added tax (VAT), which could see reductions in future, Jiang said.
So far, the VAT rate of the manufacturing sector has been reduced from 17% to 16%, and that of transportation, construction, basic telecommunications services and agricultural products reduced from 11% to 10%.