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China to take more tax cut measures

Xinhua | Updated: 2017-04-19 20:19

BEIJING -- Chinese government plans new tax cuts to reduce the burden on businesses, support innovation and stabilize growth.

Tax cuts were approved Wednesday at a State Council executive meeting presided over by Premier Li Keqiang, after the government announced measures to reduce business costs in the first quarter.

Value-added tax will be simplified, more small and micro companies will enjoy income tax incentives, and pre-tax deductions for innovation-based tech companies will rise, according to a statement made public after the meeting.

Tax incentives for venture capital firms will expand, with pre-tax deduction of commercial health insurance nationwide and a package of tax-cuts due to expire by 2016 extended for another three years.

A government work report released in March promised around 350 billion yuan ($51 billion) of cuts to corporate taxes and with business fees cut by around 200 billion yuan in 2017.

After the new measures become effective, the total tax reduction will amount to more than 380 billion yuan this year, the statement said.

The meeting ordered authorities to implement the policies as soon as possible and come up with more new measures to reduce business fees.

The meeting also approved a draft law on public libraries, which will be forwarded to the Standing Committee of the National People's Congress for deliberation.

 

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