China to cut taxes to support private sector

China to cut taxes to support private sector

BEIJING,. China’s State Administration of Taxation (SAT) is working with other government agencies to carry out tax reductions in a bid to support the private sector, the official Xinhua news agency reported.

China’s taxation authority will roll out targeted policies such as suggesting the local governments to give private firms a respite for paying taxes, SAT head Wang Jun told Xinhua in an interview.

Chinese financial institutions will continue to remain exempted from value-added tax for their interest incomes from loans to small and micro companies to encourage a flow of funds to the private sector, the report said.

The SAT will expand its program that allows businesses with sound tax-paying records to secure loans without collateral, the Xinhua report said, adding that more efforts will be taken to implement tax deductions to help companies operating abroad.

Premier Li Keqiang had earlier said that China will push for larger tax cuts and that it would help small firms facing funding difficulties and widen access for private firms in infrastructure. — Reuters