China has unveiled billions of US dollars worth of tax and fee cuts as part of a drive to help is stuttering economy, extending pledges announced last month.
With growth near a 30-year low, and the economy struggling under the weight of the US trade dispute and a soft global outlook, leaders are looking to grease the cogs by getting the country’s vast army of consumers to start spending.
The Chinese State Council on Wednesday said it would reduce electricity and Internet costs, port and railway charges, and a variety of fees for individuals and businesses to cut their annual burdens by about 300 billion yuan (US$45 billion).
For businesses, the Chinese government is to lower average electricity fees by 10 percent, and cut broadband fees for small and medium-sized businesses by 15 percent, state-run Xinhua news agency reported.
It would also cut trademark registration fees, the State Council said.
For individuals, China is to cut a variety of bureaucratic red tape, like fees on postal imports, real-estate registration, passport issuance and mobile Internet rates.
“Tax and fee cuts are our key measures to tackle the downward economic pressure this year,” Xinhua quoted Chinese Premier Li Keqiang (李克強) as saying.
The announcement follows promises last month to cut company taxes and employer social insurance contributions by nearly 2 trillion yuan (US$298 billion), with the first batch of cuts beginning on Monday.
The meeting on Wednesday also outlined new draft amendments to beef up the foreign investment law passed last month, with a provision for “non-discrimination” in administrative licensing as well as measures to improve the protection of trademarks.
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