China Will Fall Short of Ambitious Tax Cut Target, S&P Says
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China will fall well short of its target of cutting taxes and fees by a record 2 trillion yuan ($298 billion) this year, according to S&P Global Ratings.
The government will likely only be able to cut taxes by 1.5 trillion yuan, about 25 percent short of its goal, S&P credit analysts led by Yutong Zou wrote in a note on Monday. That’s because while they government has cut companies’ contributions to the social security fund, authorities will be stepping up enforcement, they wrote.