China saw more than one trillion yuan in new tax cuts in 2021, according to the latest raft of official data from the State Taxation Administration (STA).
“Full year new tax and fee reductions are estimated to have exceeded one trillion yuan in 2021” said an STA official at a national tax work conference.
“From 2016 to 2021 new tax and fee reductions exceeded 8.6 trillion yuan, while the macro-tax burden is estimated to have fallen from 18.7% in 2012 to around 15.2% in 2021
“In 2021, tax and fee reduction policies continued to be vigorous, achieving positive results in helping enterprises to ease their burdens.”
STA data further indicates that enterprises enjoyed tax reductions and exemptions of 333.3 billion yuan.
“In order to ease fund pressure on market actors at the end of the year, it is estimated that micro, small and medium-sized enterprises may handle up to 200 billion yuan in tax and fee reductions.”