CHINA will extend tax cuts to help small businesses as well as reduce tariffs on some imported goods this year amid measures to bolster the economy, according to the Ministry of Finance.
The ministry may expand a regional value-added tax trial this year to include transport companies and some service sectors nationwide, Minister of Finance Xie Xuren said in an article published on the ministry's website yesterday.
"We shall improve structural tax cuts along with the tax reforms," the article said. "We will expand the VAT system to more regions and industries, specify tax benefits for small businesses, and better implement tax and fee exemption policies to reduce the burden of companies and society."
The VAT program, covering more than 1 million firms in six provinces and three municipalities, has saved companies a combined 40 billion yuan (US$6.4 billion) by replacing the business tax.
The ministry's other tasks for this year include lowering tariffs on imported energy resource products, advanced equipment and key components, and increasing fiscal support for small businesses.
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