The government will introduce both general-benefit and structural tax cuts, focusing primarily on reducing tax burdens on the manufacturing sector and on small and micro businesses. Handout

Chinese Premier Li Keqiang introduced both general-benefit and structural tax cut plans at the on-going 13th National People’s Congress in Beijing.

This includes a 3% value-added tax cut for the manufacturing industry to 13% from 16%. The value-added tax for transportation and construction industries will be lowered to 9% from 10%, as part of government efforts to reduce tax burdens on the manufacturing sector and on small and micro businesses, Xinhua News Agency reported.

The 6% value-added tax rate for other general industries will remain unchanged, however the government will increase tax deductions for producer and consumer services to make sure tax burdens in all industries do not go up, according to the premier.

Li Keqiang noted that the government will ensure that general-benefit tax cut policies issued at the start of the year for small and micro businesses are put into effect.

The moves aim at strengthening the basis for sustained growth, while also considering the need to ensure fiscal sustainability, and are taken to support the efforts to ensure stable economic growth, employment and structural adjustments, he said.

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