An adviser to the People’s Bank of China has said another round of hefty tax reductions could be on the cards for 2019, as Beijing vows to follow through on plans for a more proactive fiscal policy.
Growth in the world’s second-largest economy has slowed to the lowest pace since the global financial crisis a decade ago, prompting policymakers to consider stimulus measures to stimulate flagging domestic demand.
Tax cuts lined up for next year could exceed 1% of GDP, said Ma Jun. Reuters calculates that such a rate would equal over Rmb 827 billion ($119 billion).
Beijing has already forecast at least Rmb 1.3 trillion of tax reductions for this year. Finance Minister Liu Kun said in September that there are plans to broaden the cuts even further in coming years.