Tax reforms are afoot in China. The country’s Finance Minister, Xie Xuren, said earlier today that China will accelerate tax cuts and reforms.
Several industries are expected to benefit from the move, which aims to boost domestic consumption . This is the latest effort from Chinese policymakers to cope with a slowdown in growth, which may drag down annual GDP growth to a 13-year-low.
So far, China has taken a slew of measures to carry out the tax regime overhaul. These include a pilot program to replace the business tax with a value-added tax. The government also cut import duties on some consumer goods, provided tax breaks for smaller firms and renewed tax regulation on private investment.
China is also brewing a plan to expand its value-added-tax beyond Shanghai, with 10 more cities and provinces currently on the waiting list.