BEIJING, July 24 (Xinhua) -- China will suspend the value-added tax (VAT) and turnover tax on small businesses with monthly sales of less than 20,000 yuan (3,226 U.S. dollars) from Aug. 1.
The announcement was made in a statement released Wednesday after an executive meeting of the State Council presided over by Premier Li Keqiang.
The move will benefit more than six million small companies and directly relate to tens of millions of people, the statement said.
VAT refers to a tax levied on the difference between a commodity's price before taxes and its cost of production. Turnover tax refers to a levy on the gross revenue of a business.
The meeting also discussed measures to facilitate foreign trade and stabilize exports such as simplifying customs clearance, cutting operational fees, increasing financial support for profitable companies, facilitating exports of small and mid-sized private enterprises, increasing imports and maintaining a stable RMB exchange rate.
The country will fully open up its railway construction market through reforms and give priority to railway construction in the central and western regions as well as poor areas, according to the statement.
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