Economics
China’s New Tax Cuts Add to Local Governments’ Funding Woes
- Fiscal revenue growth likely to be flat this year: Moody’s
- China cut taxes and fees by a record 2.6 trillion yuan in 2020
A worker on the assembly line at the Dicheng Technology Co. factory in Hangzhou, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China will deliver 550 billion yuan ($84 billion) in tax cuts to help support the economy’s recovery, a move that could also damage local governments’ finances further.
The government will lower taxes for small and micro-sized businesses and offer tax breaks for companies in advanced manufacturing, state media reported Wednesday, citing a State Council meeting chaired by Premier Li Keqiang. That’s on top of record tax and fee cuts last year.