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More major tax cuts are on the horizon

By Chen Jia | China Daily | Updated: 2018-12-18 07:40
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Individual income tax reduction will be on top of the government's task list next year. [Photo/VCG]

New policies will include incentives for SMEs, high-technology firms

Chinese companies and individuals are awaiting the unveiling of a more aggressive tax cut plan, which could be soon and aims to lower business costs and reserve more income next year.

Policymakers from the Ministry of Finance and the tax management authority have promoted the plan multiple times amid their strong determination to reduce taxes by a greater margin in 2019, which may reach 1.5 trillion yuan ($217.5 billion) as some economists predict, compared with this year's tax-cut target of 1.3 trillion yuan.

Individual income tax reduction will be on top of the government's task list next year, in order to revitalize the private sector and encourage household consumption, a senior official from the State Administration of Taxation told China Daily on Monday.

The upcoming policies will also include tax exemptions for small and medium-sized companies and high-tech enterprises, according to the official.

Once the specific tax cut measures take effect, they will stabilize economic growth and boost market sentiment, economists said.

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