ZCZC
BCN-17
CHINA-ECONOMY-TRADE
China outlines fresh tax cuts to lift economy
BEIJING, April 4, 2019 (BSS/AFP) – China has unveiled tens of billions of
dollars worth of tax and fee cuts as part of a drive to kickstart the
stuttering economy, extending pledges worth $300 billion announced last
month.
With growth at a near three-decade low and the economy struggling under
the weight of the US trade row and a soft global outlook, leaders are looking
to grease the cogs by getting the country’s vast army of consumers to start
spending.
The State Council, or cabinet, said late Wednesday it would reduce
electricity and internet costs, port and railway charges and a variety of
fees for individuals and businesses to cut their annual burdens by about 300
billion yuan ($45 billion).
For businesses, the government will lower average electricity fees by 10
percent and cut broadband fees for small- and medium-sized businesses by 15
percent, the official Xinhua news agency reported.
It will also cut trademark registration fees, the State Council said.
For individuals, China will cut a variety of bureaucratic red tape, like
fees on postal imports, real estate registration, passport issuance and
mobile internet rates.
“Tax and fee cuts are our key measures to tackle the downward economic
pressure this year,” said Premier Li Keqiang, according to Xinhua.
The announcement follows promises last month to cut company taxes and
employer social insurance contributions by nearly two trillion yuan ($298
billion), with the first batch of cuts kicking in April 1.
The meeting Wednesday also outlined new draft amendments to beef up the
foreign investment law passed last month, with a provision for “non-
discrimination” in administrative licensing as well as measures to improve
the protection of trademarks.
BSS/AFP/HR/1045