Skip to content
Subscriber Only
Markets
Economics

China Plans $90 Billion Cut in VAT for Manufacturers

  • Reduction set to be 3 percentage points on highest VAT rate
  • Premier Li Keqiang due to present policy report on Tuesday
Bloomberg business news
China Is Said to Plan $90 Billion Cut in VAT for Manufacturers
Updated on

China is planning to cut the value-added tax rate that covers the manufacturing sector by 3 percentage points as part of measures to support the slowing economy, a person familiar with the matter said.

The reduction in the highest of the nation’s three VAT brackets could be announced as soon as this week, when political leaders are gathering in Beijing for the annual National People’s Congress, the person said, who declined to be named as the matter isn’t public.