China to cut taxes by $55 billion this year

by Dramelin 3:30 AM 0 comments

China is cutting taxes this year by 380 billion yuan ($55 billion) in efforts to encourage spending and boost growth.
The value-added tax system will be reduced from four brackets to three, and the tax rate for products including natural gas and farm items will be cut to 11 percent from 13 percent.
Tax breaks are increasing for small and medium-sized businesses with annual income of 500,000 yuan or less, according to a State Council statement.
The government is also rolling out incentives to boost tech and R&D, and from July 1, citizens purchasing their own health insurance can deduct 2,400 yuan from their taxable income.