China’s State Council has announced tax cuts that will reduce businesses’ costs by around $6.6 billion this year as Beijing looks to support the economy and offset the impact of the trade war with the United States, Reuters reports.
“Cutting taxes and reducing costs are a key initiatives in implementing active fiscal policy and ensuring a stable economy,” said the State Council in a statement.
Premier Li Keqiang also announced during a State Council meeting that Beijing will increase export tax rebates for some products and waive taxes on banks for interest income from loans to small businesses.
Foreign investors, meanwhile, will not have to pay enterprise or value-added taxes on income earned via interest in the Chinese bond market for the next three years.