China’s latest round of levy cuts have resulted in tax and fee reductions exceeding 893 billion yuan since the start of 2019.
Figures from the State Taxation Administration (国家税务总局) indicate that during the period from January to May China’s nationwide new tax and fee reductions totalled 893 billion yuan, including 816.8 billion yuan in tax cuts and 76.2 billion yuan in social security fee reductions.
Tax reductions for the first five months of 2019 were comprised primarily of three parts:
- 351.1 billion yuan in tax reductions resulting from policies unveiled in 2019, including reductions of 221.8 billion yuan as a result of further value-added tax reforms, and 91.7 billion yuan as a result of discount policies for micro and small enterprise and personal income taxes;
- 460.4 billion yuan in tax reductions as a result of the run-on effect of policies launched in 2018;
- 5.3 billion yuan in tax reductions resulting from the extension in 2019 of tax reduction policies that expired in 2018.