The Chinese government is hailing the positive economic impacts of mammoth tax and administrative fee cuts launched during China’s 13th Five Year Plan (2016 – 2020).
Data from China’s tax authorities indicates that tax and fee reductions for the period from 2016 to 2020 are expected to total around 7.6 trillion yuan (USD$1.16 trillion).
Efforts to reduce the tax burden for Chinese households and businesses saw an especially big boost in 2019, with tax and fee reductions reaching 2.36 trillion yuan, or more than 2% of China’s national GDP.
The Chinese government estimates that these tax reductions drove an increase in full year GDP growth of 0.8 percentage points.
