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chinadaily.com.cn/Xinhua | Updated: 2019-09-24 10:58
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Minister of Finance Liu Kun answers questions at a news conference in Beijing on Sept 24, 2019.[Photo by Zhu Xingxin/chinadaily.com.cn]

China's tax and fee cuts reach 1.35t yuan in Jan-July

BEIJING -- China's "unprecedented" massive tax and fee cut saved enterprises and individuals nearly 1.35 trillion yuan (about $189 billion) in the first seven months of this year, Minister of Finance Liu Kun said.

"The reduction policies are so comprehensive that almost all taxpayers will benefit from the tax and fee cuts this year," Liu told the news conference.

During the period, taxes were reduced by a total of 1.17 trillion yuan. The private sector took 63 percent of the tax relief. In terms of industries, manufacturing enterprises got the lion's share and saw 364.8 billion yuan less duties levied, or 31 percent of the total tax reduction.

Cutting taxes and fees has stimulated market vitality, enhanced market confidence, and boosted economic growth momentum, Liu said.

"The package of comprehensive cutting taxes and fees policies implemented this year has been well received as the most direct, effective and fair incentives to enterprises," he added.

For each day in the January-August period, there were 19,000 newly-registered companies on average, and investment in high-tech industries picked up to grow 13 percent year-on-year, the minister said.

"The main indicators of the first eight months showed that the Chinese economy had stayed within a reasonable range and achieved generally stable growth while making further progress," Liu said. "The tax and fee cuts have played an important role."

Pension insurance remains stable

China's pension insurance is stable and payment is guaranteed, said Liu Kun, Minister of Finance.

From January to July, China collected 3.8 trillion yuan in employee basic pension funds, while spending 3.2 trillion yuan, leaving a balance of about 200 billion yuan. The cumulative balance stood at 5 trillion yuan at the end of July.

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