ZCZC
BCN-11
CHINA-TAX-CUT
China’s tax cut measures to support real economy: experts
BEIJING, Sept. 30, 2018 (BSS/Xinhua) – China’s new tax and fee cuts will
boost the real economy through reducing corporate burdens and creating a
stable and fair business environment, experts told the Xinhua-run Economic
Information Daily.
Starting from Oct. 1, the minimum threshold for personal income tax will
be raised from 3,500 yuan (about 510 U.S. dollars) to 5,000 yuan per month,
or 60,000 yuan per year.
Those whose monthly salaries range from 5,000 yuan to 20,000 yuan will see
their tax get cut by over 50 percent and those whose monthly salaries range
from 20,000 yuan to 80,000 yuan will see their tax get cut by 10 to 50
percent.
Individual income tax was the third biggest contributor to China’s total
tax revenue, following value-added tax and enterprise income tax. Last year,
China collected individual income tax worth nearly 1.2 trillion yuan, about
8.3 percent of the country’s total tax revenue.
Last month, a State Council executive meeting chaired by Premier Li
Keqiang saw the unveiling of new tax cut measures aimed at boosting the real
economy while working to ensure the full implementation of all existing tax
reduction measures.
All tax cut incentives decided at the meeting were expected to cut
corporate tax burdens by more than 45 billion yuan this year.
Analysts agree that tax reduction has played a significant role in further
boosting market vitality and driving industrial development.
“These tax cut measures will help create a stable, fair and transparent
business environment, inject vitality into market entities, and allow more
people to enjoy bonuses of the reform,” said Prof. Xu Zhengzhong with the
Party School of the Communist Party of China (CPC) Central Committee.
Zhang Lianqi from Ruihua Certified Public Accountants said that China’s
tax reform is conducive to the transformation and upgrading of the real
economy and the stabilization of economic growth.
BSS/XINHUA/HR/1155