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      China's new tax, fee cuts save businesses 1.2 trln yuan in H1

      Source: Xinhua| 2019-07-23 15:17:33|Editor: Yamei
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      BEIJING, July 23 (Xinhua) -- China's newly-introduced tax cuts and fee reductions have saved businesses by around 1.17 trillion yuan (about 170 billion U.S. dollars) in the first half of the year, official data showed Tuesday.

      The private sector has gained the most from the reforms, with 671.2 billion yuan of taxes reduced during the period, according to data released at a press briefing of the State Taxation Administration (STA).

      "The tax cuts and fee reductions have significantly enhanced business vitality... and increased market confidence," said Cai Zili, an official with the STA.

      To counter downward pressure on the economy, the Chinese government has rolled out large-scale tax breaks for small and micro firms and further reduced individual income tax.

      In the first half of the year, targeted tax breaks have saved small and micro businesses 116.4 billion yuan.

      In the latest report, China International Capital Corporation Limited (CICC) predicted that the effect of large scale tax cuts this year will likely reach its peak in Q3, supporting corporate profitability and consumption growth.

      China's economy expanded 6.3 percent in the first half, in line with the government's annual target of 6-6.5 percent.

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