BEIJING (AP) — China will cut income taxes on companies and import duties on energy and raw materials as part of efforts to spur domestic consumption and reduce reliance on exports and investment, the finance minister said Tuesday.
Beijing also will spend more on education, health and other services to ease burdens on households and free up money for consumer spending, Xie Xuren said at a news conference during the annual meeting of China’s legislature.
“All these measures will relieve the tax burden on enterprises and people to boost consumption and promote structural adjustment,” Xie said.
The change in business taxes comes after Beijing raised the threshold for paying personal income taxes last July, effectively exempting up to 60 million workers.
Xie said Beijing will make further income tax changes this year to “relieve burdens on enterprises and people” but gave no details.
The government cut import tariffs on more than 730 types of goods on Jan. 1 to ease imports of energy, other resources and advanced equipment, Xie said.
Communist authorities will also reduce value-added tax charged on vegetables and other taxes on land use and trading in agricultural products, he said.