Beijing mulls $17.5bn business-tax cut

China’s government will likely to cut business tax by 1% from the current 5% rate to stimulate the economy, state media reported. The issue is currently under discussion at the Central Economic Work Conference in Beijing, which will set the direction of economic policies for the next year. No timeframe for the cuts has been mentioned to date, but the total amount would be worth US$175 billion in tax cuts. Policymakers are also discussing raising the threshold of personal income tax from RMB2,000 to RMB3,000 (US$290-435) per month to spur consumption. Business tax is distinct from enterprise income and value-added tax, and is charged to businesses that provide labor services, transfer intangible assets or sell immovable property on the mainland.