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China vows to promote structural tax cuts

0 Comment(s)Print E-mail CNTV, February 21, 2012
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Reducing taxes is one way in which China is planning to support the domestic economy. China's Finance Minister says the country will promote structural tax cuts, in order to boost business and encourage consumption.

Chinese Finance Minister, Xie Xuren, says this year's fiscal policies should support the stable and rapid development of China's economy. He says the country's economic fundamentals are good, however, this year's economic environment is complicated and challenging, both internally and externally. The ministry is working towards structural tax cuts to support enterprises and encourage domestic consumption.

He also said:" We will gradually lift the starting point for the value-added tax and business tax, and roll out measures to support small and micro enterprises. We will push forward the pilot program to unify business tax with value-added tax."

Some enterprises have already benefited from the tax reduction policies. This noodle restaurant's revenue is less than 20 thousand yuan a year. With a higher starting point for value added tax and business tax, the business is now exempt from those taxes.

One noodle restaurant owner named Zeng Lingshu said:" I pay 2 to 3 thousand yuan less tax, which means I make more money each year."

Other fiscal policy changes include lowering customs duties of some imported products to encourage imports of energy and resources, advanced equipment, and key components. The Ministry of Finance also notes, China will support modern service industries, eliminate the tax on wholesale vegetables and retail businesses, eliminate unreasonable and illegal fees, and regulate road toll fees.

 

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