China emphasizes tax cuts in seeking growth
China’s latest efforts to implement structural tax cuts will benefit its economic restructuring and promote steady growth amid the current economic slowdown, analysts have said.
China will attach more significance to seeking steady economic growth and adhere to a proactive fiscal policy and prudent monetary policy, according to a newsletter released Tuesday after a meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee presided over by President Hu Jintao.
“The country will intensify the implementation of policies regarding structural tax cuts,” the newsletter said.
Analysts have said that structural tax cuts will help alleviate tax burdens for businesses and individuals, serve the country’s economic restructuring and promote high-quality growth.
Fan Yong, a professor at the Central University of Finance and Economics (CUFE), said structural tax reduction will not mean simply cutting tax rates, but a structural adjustment that will include both tax increases and reductions.